Correlation Between High Yield and Sentinel International
Can any of the company-specific risk be diversified away by investing in both High Yield and Sentinel International 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 High Yield and Sentinel International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Fund and Sentinel International Equity, you can compare the effects of market volatilities on High Yield and Sentinel International 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 High Yield with a short position of Sentinel International. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and Sentinel International.
Diversification Opportunities for High Yield and Sentinel International
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between High and Sentinel is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Fund and Sentinel International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel International and High Yield 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 High Yield Fund are associated (or correlated) with Sentinel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel International has no effect on the direction of High Yield i.e., High Yield and Sentinel International go up and down completely randomly.
Pair Corralation between High Yield and Sentinel International
Assuming the 90 days horizon High Yield is expected to generate 3.5 times less return on investment than Sentinel International. But when comparing it to its historical volatility, High Yield Fund is 6.88 times less risky than Sentinel International. It trades about 0.44 of its potential returns per unit of risk. Sentinel International Equity is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,722 in Sentinel International Equity on May 29, 2025 and sell it today you would earn a total of 183.00 from holding Sentinel International Equity or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
High Yield Fund vs. Sentinel International Equity
Performance |
| Timeline |
| High Yield Fund |
| Sentinel International |
High Yield and Sentinel International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and Sentinel International
The main advantage of trading using opposite High Yield and Sentinel International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield position performs unexpectedly, Sentinel International 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 International will offset losses from the drop in Sentinel International's long position.| High Yield vs. Columbia Convertible Securities | High Yield vs. Harbor Vertible Securities | High Yield vs. Rationalpier 88 Convertible | High Yield vs. Fidelity Sai Convertible |
| Sentinel International vs. Sentinel Mon Stock | Sentinel International vs. Sentinel Small Pany | Sentinel International vs. Sentinel Balanced Fund | Sentinel International vs. Touchstone Sustainability And |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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