Correlation Between Pro Blend and Saat Aggressive
Can any of the company-specific risk be diversified away by investing in both Pro Blend and Saat Aggressive 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 Pro Blend and Saat Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Moderate Term and Saat Aggressive Strategy, you can compare the effects of market volatilities on Pro Blend and Saat Aggressive 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 Pro Blend with a short position of Saat Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Blend and Saat Aggressive.
Diversification Opportunities for Pro Blend and Saat Aggressive
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pro and Saat is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Moderate Term and Saat Aggressive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Aggressive Strategy and Pro Blend 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 Pro Blend Moderate Term are associated (or correlated) with Saat Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Aggressive Strategy has no effect on the direction of Pro Blend i.e., Pro Blend and Saat Aggressive go up and down completely randomly.
Pair Corralation between Pro Blend and Saat Aggressive
Assuming the 90 days horizon Pro Blend is expected to generate 1.34 times less return on investment than Saat Aggressive. But when comparing it to its historical volatility, Pro Blend Moderate Term is 1.49 times less risky than Saat Aggressive. It trades about 0.12 of its potential returns per unit of risk. Saat Aggressive Strategy is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,214 in Saat Aggressive Strategy on September 12, 2024 and sell it today you would earn a total of 267.00 from holding Saat Aggressive Strategy or generate 21.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Blend Moderate Term vs. Saat Aggressive Strategy
Performance |
| Timeline |
| Pro Blend Moderate |
| Saat Aggressive Strategy |
Pro Blend and Saat Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Blend and Saat Aggressive
The main advantage of trading using opposite Pro Blend and Saat Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Blend position performs unexpectedly, Saat Aggressive 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 Aggressive will offset losses from the drop in Saat Aggressive's long position.| Pro Blend vs. Pro Blend Servative Term | Pro Blend vs. Pro Blend Extended Term | Pro Blend vs. Pro Blend Maximum Term | Pro Blend vs. Greenspring Fund Retail |
| Saat Aggressive vs. Pro Blend Moderate Term | Saat Aggressive vs. Blackrock Moderate Prepared | Saat Aggressive vs. Saat Moderate Strategy | Saat Aggressive vs. Columbia Moderate Growth |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |