Correlation Between Sextant E and Short Precious
Can any of the company-specific risk be diversified away by investing in both Sextant E and Short Precious at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sextant E and Short Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sextant E Fund and Short Precious Metals, you can compare the effects of market volatilities on Sextant E and Short Precious and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sextant E with a short position of Short Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sextant E and Short Precious.
Diversification Opportunities for Sextant E and Short Precious
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sextant and Short is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sextant E Fund and Short Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Precious Metals and Sextant E is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sextant E Fund are associated (or correlated) with Short Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Precious Metals has no effect on the direction of Sextant E i.e., Sextant E and Short Precious go up and down completely randomly.
Pair Corralation between Sextant E and Short Precious
Assuming the 90 days horizon Sextant E Fund is expected to generate 0.3 times more return on investment than Short Precious. However, Sextant E Fund is 3.31 times less risky than Short Precious. It trades about 0.19 of its potential returns per unit of risk. Short Precious Metals is currently generating about -0.26 per unit of risk. If you would invest 1,679 in Sextant E Fund on October 26, 2024 and sell it today you would earn a total of 30.00 from holding Sextant E Fund or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Sextant E Fund vs. Short Precious Metals
Performance |
| Timeline |
| Sextant E Fund |
| Short Precious Metals |
Sextant E and Short Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sextant E and Short Precious
The main advantage of trading using opposite Sextant E and Short Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sextant E position performs unexpectedly, Short Precious can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Short Precious will offset losses from the drop in Short Precious' long position.| Sextant E vs. Short Precious Metals | Sextant E vs. Gamco Global Gold | Sextant E vs. Great West Goldman Sachs | Sextant E vs. Wells Fargo Advantage |
| Short Precious vs. Pace Municipal Fixed | Short Precious vs. Ab Global Bond | Short Precious vs. Metropolitan West Porate | Short Precious vs. Old Westbury Municipal |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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