Correlation Between Saba Closed and Drum Income
Can any of the company-specific risk be diversified away by investing in both Saba Closed and Drum Income 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 Saba Closed and Drum Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saba Closed End Funds and Drum Income Plus, you can compare the effects of market volatilities on Saba Closed and Drum Income 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 Closed with a short position of Drum Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saba Closed and Drum Income.
Diversification Opportunities for Saba Closed and Drum Income
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saba and Drum is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Saba Closed End Funds and Drum Income Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Drum me Plus and Saba Closed 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 Closed End Funds are associated (or correlated) with Drum Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Drum me Plus has no effect on the direction of Saba Closed i.e., Saba Closed and Drum Income go up and down completely randomly.
Pair Corralation between Saba Closed and Drum Income
Given the investment horizon of 90 days Saba Closed End Funds is expected to generate 0.25 times more return on investment than Drum Income. However, Saba Closed End Funds is 3.97 times less risky than Drum Income. It trades about 0.1 of its potential returns per unit of risk. Drum Income Plus is currently generating about -0.05 per unit of risk. If you would invest 1,634 in Saba Closed End Funds on January 20, 2024 and sell it today you would earn a total of 329.00 from holding Saba Closed End Funds or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Saba Closed End Funds vs. Drum Income Plus
Performance |
| Timeline |
| Saba Closed End |
| Drum me Plus |
Saba Closed and Drum Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saba Closed and Drum Income
The main advantage of trading using opposite Saba Closed and Drum Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saba Closed position performs unexpectedly, Drum Income 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 Drum Income will offset losses from the drop in Drum Income's long position.| Saba Closed vs. First Trust Income | Saba Closed vs. Invesco CEF Income | Saba Closed vs. GraniteShares HIPS High | Saba Closed vs. Global X Alternative |
| Drum Income vs. ProShares Ultra SP500 | Drum Income vs. HUMANA INC | Drum Income vs. Aquagold International | Drum Income vs. Thrivent High Yield |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |