Correlation Between Cemtrex Pref and Salient Investment

Can any of the company-specific risk be diversified away by investing in both Cemtrex Pref and Salient Investment 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 Cemtrex Pref and Salient Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cemtrex Pref and Salient Investment Grade, you can compare the effects of market volatilities on Cemtrex Pref and Salient Investment 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 Cemtrex Pref with a short position of Salient Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtrex Pref and Salient Investment.

Diversification Opportunities for Cemtrex Pref and Salient Investment

0.71

Correlation Coefficient

Cemtrex Pref  Salient Investment

Poor diversification

The 3 months correlation between Cemtrex and Salient is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cemtrex Pref and Salient Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Investment Grade and Cemtrex Pref 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 Cemtrex Pref are associated (or correlated) with Salient Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Investment Grade has no effect on the direction of Cemtrex Pref i.e., Cemtrex Pref and Salient Investment go up and down completely randomly.

Pair Corralation between Cemtrex Pref and Salient Investment

If you would invest  1,064  in Salient Investment Grade on September 3, 2024 and sell it today you would earn a total of  258.00  from holding Salient Investment Grade or generate 24.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Cemtrex Pref  vs.  Salient Investment Grade

Cemtrex Pref

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cemtrex Pref has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Cemtrex Pref is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Salient Investment Grade

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Salient Investment Grade are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Salient Investment showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cemtrex Pref and Salient Investment

The main advantage of trading using opposite Cemtrex Pref and Salient Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemtrex Pref position performs unexpectedly, Salient Investment 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 Salient Investment will offset losses from the drop in Salient Investment's long position.

The idea behind Cemtrex Pref and Salient Investment Grade pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.