Correlation Between James Balanced: and Sentinel Small
Can any of the company-specific risk be diversified away by investing in both James Balanced: and Sentinel Small 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 James Balanced: and Sentinel Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Sentinel Small, you can compare the effects of market volatilities on James Balanced: and Sentinel Small 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 James Balanced: with a short position of Sentinel Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Sentinel Small.
Diversification Opportunities for James Balanced: and Sentinel Small
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between James and Sentinel is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Sentinel Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Small and James Balanced: 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 James Balanced Golden are associated (or correlated) with Sentinel Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Small has no effect on the direction of James Balanced: i.e., James Balanced: and Sentinel Small go up and down completely randomly.
Pair Corralation between James Balanced: and Sentinel Small
Assuming the 90 days horizon James Balanced: is expected to generate 1.31 times less return on investment than Sentinel Small. But when comparing it to its historical volatility, James Balanced Golden is 2.88 times less risky than Sentinel Small. It trades about 0.32 of its potential returns per unit of risk. Sentinel Small is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 629.00 in Sentinel Small on June 11, 2025 and sell it today you would earn a total of 55.00 from holding Sentinel Small or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Sentinel Small
Performance |
| Timeline |
| James Balanced Golden |
| Sentinel Small |
James Balanced: and Sentinel Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Sentinel Small
The main advantage of trading using opposite James Balanced: and Sentinel Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Sentinel Small 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 Sentinel Small will offset losses from the drop in Sentinel Small's long position.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Large Cap Fund | James Balanced: vs. Westcore Plus Bond |
| Sentinel Small vs. Mutual Of America | Sentinel Small vs. Ab High Income | Sentinel Small vs. Riskproreg Dynamic 0 10 | Sentinel Small vs. Barings 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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