Correlation Between Pro Blend and Saat E
Can any of the company-specific risk be diversified away by investing in both Pro Blend and Saat E 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 E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Maximum Term and Saat E Market, you can compare the effects of market volatilities on Pro Blend and Saat E 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 E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Blend and Saat E.
Diversification Opportunities for Pro Blend and Saat E
Almost no diversification
The 3 months correlation between Pro and Saat is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Maximum Term and Saat E Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat E Market 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 Maximum Term are associated (or correlated) with Saat E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat E Market has no effect on the direction of Pro Blend i.e., Pro Blend and Saat E go up and down completely randomly.
Pair Corralation between Pro Blend and Saat E
Assuming the 90 days horizon Pro Blend Maximum Term is expected to generate 0.66 times more return on investment than Saat E. However, Pro Blend Maximum Term is 1.52 times less risky than Saat E. It trades about -0.03 of its potential returns per unit of risk. Saat E Market is currently generating about -0.07 per unit of risk. If you would invest 2,648 in Pro Blend Maximum Term on October 24, 2024 and sell it today you would lose (58.00) from holding Pro Blend Maximum Term or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Blend Maximum Term vs. Saat E Market
Performance |
| Timeline |
| Pro Blend Maximum |
| Saat E Market |
Pro Blend and Saat E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Blend and Saat E
The main advantage of trading using opposite Pro Blend and Saat E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Blend position performs unexpectedly, Saat E 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 E will offset losses from the drop in Saat E's long position.| Pro Blend vs. Pro Blend Extended Term | Pro Blend vs. Pro Blend Moderate Term | Pro Blend vs. Pro Blend Servative Term | Pro Blend vs. Large Cap Fund |
| Saat E vs. Saat Tax Managed Aggressive | Saat E vs. Saat Market Growth | Saat E vs. Saat Moderate Strategy | Saat E vs. Simt Tax Managed Managed |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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