Correlation Between Winland Holdings and Salient Investment

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

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

Diversification Opportunities for Winland Holdings and Salient Investment

0.0

Correlation Coefficient

Winland Holdings  Salient Investment

Pay attention - limited upside

The 3 months correlation between Winland and Salient is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Winland Holdings 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 Winland Holdings 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 Winland Holdings 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 Winland Holdings i.e., Winland Holdings and Salient Investment go up and down completely randomly.

Pair Corralation between Winland Holdings and Salient Investment

If you would invest (100.00) in Winland Holdings on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Winland Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Winland Holdings  vs.  Salient Investment Grade

Winland Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Winland Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Winland Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Salient Investment Grade

Risk-Adjusted Performance

Very Weak

Over the last 90 days Salient Investment Grade has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Winland Holdings and Salient Investment

The main advantage of trading using opposite Winland Holdings and Salient Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winland Holdings 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 Winland Holdings 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.