Correlation Between Western Union and Saratoga Investment
Can any of the company-specific risk be diversified away by investing in both Western Union and Saratoga 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 Western Union and Saratoga Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Union Co and Saratoga Investment Corp, you can compare the effects of market volatilities on Western Union and Saratoga 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 Western Union with a short position of Saratoga Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Union and Saratoga Investment.
Diversification Opportunities for Western Union and Saratoga Investment
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and Saratoga is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Western Union Co and Saratoga Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Investment Corp and Western Union 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 Western Union Co are associated (or correlated) with Saratoga Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Investment Corp has no effect on the direction of Western Union i.e., Western Union and Saratoga Investment go up and down completely randomly.
Pair Corralation between Western Union and Saratoga Investment
Allowing for the 90-day total investment horizon Western Union Co is expected to under-perform the Saratoga Investment. In addition to that, Western Union is 1.37 times more volatile than Saratoga Investment Corp. It trades about 0.0 of its total potential returns per unit of risk. Saratoga Investment Corp is currently generating about 0.05 per unit of volatility. If you would invest 2,202 in Saratoga Investment Corp on December 2, 2024 and sell it today you would earn a total of 398.00 from holding Saratoga Investment Corp or generate 18.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Western Union Co vs. Saratoga Investment Corp
Performance |
Timeline |
Western Union |
Saratoga Investment Corp |
Western Union and Saratoga Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Union and Saratoga Investment
The main advantage of trading using opposite Western Union and Saratoga Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Union position performs unexpectedly, Saratoga 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 Saratoga Investment will offset losses from the drop in Saratoga Investment's long position.Western Union vs. Navient Corp | Western Union vs. Green Dot | Western Union vs. Orix Corp Ads | Western Union vs. FirstCash |
Saratoga Investment vs. New Mountain Finance | Saratoga Investment vs. BlackRock TCP Capital | Saratoga Investment vs. Carlyle Secured Lending | Saratoga Investment vs. Sixth Street Specialty |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |