Correlation Between Saba Capital and 191216CM0
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By analyzing existing cross correlation between Saba Capital Income and COCA COLA CO, you can compare the effects of market volatilities on Saba Capital and 191216CM0 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 Saba Capital with a short position of 191216CM0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saba Capital and 191216CM0.
Diversification Opportunities for Saba Capital and 191216CM0
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Saba and 191216CM0 is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Saba Capital Income and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO and Saba Capital 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 Saba Capital Income are associated (or correlated) with 191216CM0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of Saba Capital i.e., Saba Capital and 191216CM0 go up and down completely randomly.
Pair Corralation between Saba Capital and 191216CM0
Given the investment horizon of 90 days Saba Capital Income is expected to generate 1.51 times more return on investment than 191216CM0. However, Saba Capital is 1.51 times more volatile than COCA COLA CO. It trades about 0.06 of its potential returns per unit of risk. COCA COLA CO is currently generating about 0.01 per unit of risk. If you would invest 719.00 in Saba Capital Income on September 24, 2024 and sell it today you would earn a total of 170.00 from holding Saba Capital Income or generate 23.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 99.2% |
Values | Daily Returns |
Saba Capital Income vs. COCA COLA CO
Performance |
Timeline |
Saba Capital Income |
COCA A CO |
Saba Capital and 191216CM0 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saba Capital and 191216CM0
The main advantage of trading using opposite Saba Capital and 191216CM0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saba Capital position performs unexpectedly, 191216CM0 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 191216CM0 will offset losses from the drop in 191216CM0's long position.Saba Capital vs. Vanguard Total Stock | Saba Capital vs. SPDR SP 500 | Saba Capital vs. iShares Core SP | Saba Capital vs. Vanguard Total Bond |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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