Correlation Between Dynamic Growth and Saat Aggressive

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Can any of the company-specific risk be diversified away by investing in both Dynamic Growth 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 Dynamic Growth and Saat Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynamic Growth Fund and Saat Aggressive Strategy, you can compare the effects of market volatilities on Dynamic Growth 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 Dynamic Growth with a short position of Saat Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynamic Growth and Saat Aggressive.

Diversification Opportunities for Dynamic Growth and Saat Aggressive

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Dynamic and Saat is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Dynamic Growth Fund 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 Dynamic Growth 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 Dynamic Growth Fund 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 Dynamic Growth i.e., Dynamic Growth and Saat Aggressive go up and down completely randomly.

Pair Corralation between Dynamic Growth and Saat Aggressive

Assuming the 90 days horizon Dynamic Growth Fund is expected to generate 1.27 times more return on investment than Saat Aggressive. However, Dynamic Growth is 1.27 times more volatile than Saat Aggressive Strategy. It trades about 0.12 of its potential returns per unit of risk. Saat Aggressive Strategy is currently generating about 0.13 per unit of risk. If you would invest  1,205  in Dynamic Growth Fund on August 25, 2024 and sell it today you would earn a total of  355.00  from holding Dynamic Growth Fund or generate 29.46% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Dynamic Growth Fund  vs.  Saat Aggressive Strategy

 Performance 
       Timeline  
Dynamic Growth 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Dynamic Growth Fund are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Dynamic Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Saat Aggressive Strategy 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Saat Aggressive Strategy are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Saat Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dynamic Growth and Saat Aggressive Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dynamic Growth and Saat Aggressive

The main advantage of trading using opposite Dynamic Growth and Saat Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynamic Growth 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.
The idea behind Dynamic Growth Fund and Saat Aggressive Strategy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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