Correlation Between Sa Worldwide and High Yield
Can any of the company-specific risk be diversified away by investing in both Sa Worldwide and High Yield 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 Sa Worldwide and High Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sa Worldwide Moderate and High Yield Municipal Fund, you can compare the effects of market volatilities on Sa Worldwide and High Yield 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 Sa Worldwide with a short position of High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sa Worldwide and High Yield.
Diversification Opportunities for Sa Worldwide and High Yield
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAWMX and High is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sa Worldwide Moderate and High Yield Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Municipal and Sa Worldwide 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 Sa Worldwide Moderate are associated (or correlated) with High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Municipal has no effect on the direction of Sa Worldwide i.e., Sa Worldwide and High Yield go up and down completely randomly.
Pair Corralation between Sa Worldwide and High Yield
Assuming the 90 days horizon Sa Worldwide Moderate is expected to generate 2.67 times more return on investment than High Yield. However, Sa Worldwide is 2.67 times more volatile than High Yield Municipal Fund. It trades about 0.1 of its potential returns per unit of risk. High Yield Municipal Fund is currently generating about 0.11 per unit of risk. If you would invest 1,291 in Sa Worldwide Moderate on September 11, 2025 and sell it today you would earn a total of 31.00 from holding Sa Worldwide Moderate or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sa Worldwide Moderate vs. High Yield Municipal Fund
Performance |
| Timeline |
| Sa Worldwide Moderate |
| High Yield Municipal |
Sa Worldwide and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sa Worldwide and High Yield
The main advantage of trading using opposite Sa Worldwide and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa Worldwide position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| Sa Worldwide vs. Capital Income Builder | Sa Worldwide vs. Capital Income Builder | Sa Worldwide vs. Barloworld Ltd ADR | Sa Worldwide vs. Thrivent High Yield |
| High Yield vs. Tiaa Cref Lifestyle Moderate | High Yield vs. College Retirement Equities | High Yield vs. Sa Worldwide Moderate | High Yield vs. Dimensional Retirement Income |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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