Correlation Between Global Gold and Saat Market
Can any of the company-specific risk be diversified away by investing in both Global Gold and Saat Market 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 Global Gold and Saat Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gold Fund and Saat Market Growth, you can compare the effects of market volatilities on Global Gold and Saat Market 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 Global Gold with a short position of Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Saat Market.
Diversification Opportunities for Global Gold and Saat Market
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GLOBAL and Saat is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth and Global Gold 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 Global Gold Fund are associated (or correlated) with Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Global Gold i.e., Global Gold and Saat Market go up and down completely randomly.
Pair Corralation between Global Gold and Saat Market
Assuming the 90 days horizon Global Gold Fund is expected to under-perform the Saat Market. In addition to that, Global Gold is 5.25 times more volatile than Saat Market Growth. It trades about -0.18 of its total potential returns per unit of risk. Saat Market Growth is currently generating about 0.34 per unit of volatility. If you would invest 1,244 in Saat Market Growth on September 4, 2024 and sell it today you would earn a total of 33.00 from holding Saat Market Growth or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Global Gold Fund vs. Saat Market Growth
Performance |
| Timeline |
| Global Gold Fund |
| Saat Market Growth |
Global Gold and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Saat Market
The main advantage of trading using opposite Global Gold and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Saat Market 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 Saat Market will offset losses from the drop in Saat Market's long position.| Global Gold vs. Putnam Convertible Incm Gwth | Global Gold vs. Rationalpier 88 Convertible | Global Gold vs. Advent Claymore Convertible | Global Gold vs. Gabelli Convertible And |
| Saat Market vs. Global Gold Fund | Saat Market vs. Gabelli Gold Fund | Saat Market vs. Goldman Sachs Clean | Saat Market vs. Vy Goldman Sachs |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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