Correlation Between Salient Mlp and Benefitfocus

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

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

Diversification Opportunities for Salient Mlp and Benefitfocus

0.68

Correlation Coefficient

Salient Mlp  Benefitfocus

Poor diversification

The 3 months correlation between Salient and Benefitfocus is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Salient Mlp Energy and Benefitfocus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benefitfocus and Salient Mlp 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 Salient Mlp Energy are associated (or correlated) with Benefitfocus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benefitfocus has no effect on the direction of Salient Mlp i.e., Salient Mlp and Benefitfocus go up and down completely randomly.

Pair Corralation between Salient Mlp and Benefitfocus

If you would invest  872.00  in Salient Mlp Energy on February 26, 2024 and sell it today you would earn a total of  4.00  from holding Salient Mlp Energy or generate 0.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	4.55%
Values	Daily Returns

Salient Mlp Energy  vs.  Benefitfocus

Salient Mlp Energy

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Salient Mlp Energy are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Salient Mlp may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Benefitfocus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Benefitfocus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Benefitfocus is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Salient Mlp and Benefitfocus

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

The idea behind Salient Mlp Energy and Benefitfocus 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.