Correlation Between Multimanager Lifestyle and Saat Moderate
Can any of the company-specific risk be diversified away by investing in both Multimanager Lifestyle and Saat Moderate 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 Multimanager Lifestyle and Saat Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multimanager Lifestyle Moderate and Saat Moderate Strategy, you can compare the effects of market volatilities on Multimanager Lifestyle and Saat Moderate 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 Multimanager Lifestyle with a short position of Saat Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimanager Lifestyle and Saat Moderate.
Diversification Opportunities for Multimanager Lifestyle and Saat Moderate
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MULTIMANAGER and Saat is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Multimanager Lifestyle Moderat and Saat Moderate Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Moderate Strategy and Multimanager Lifestyle 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 Multimanager Lifestyle Moderate are associated (or correlated) with Saat Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Moderate Strategy has no effect on the direction of Multimanager Lifestyle i.e., Multimanager Lifestyle and Saat Moderate go up and down completely randomly.
Pair Corralation between Multimanager Lifestyle and Saat Moderate
Assuming the 90 days horizon Multimanager Lifestyle Moderate is expected to generate 1.2 times more return on investment than Saat Moderate. However, Multimanager Lifestyle is 1.2 times more volatile than Saat Moderate Strategy. It trades about 0.13 of its potential returns per unit of risk. Saat Moderate Strategy is currently generating about 0.1 per unit of risk. If you would invest 1,242 in Multimanager Lifestyle Moderate on September 2, 2024 and sell it today you would earn a total of 31.00 from holding Multimanager Lifestyle Moderate or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multimanager Lifestyle Moderat vs. Saat Moderate Strategy
Performance |
| Timeline |
| Multimanager Lifestyle |
| Saat Moderate Strategy |
Multimanager Lifestyle and Saat Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multimanager Lifestyle and Saat Moderate
The main advantage of trading using opposite Multimanager Lifestyle and Saat Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multimanager Lifestyle position performs unexpectedly, Saat Moderate 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 Moderate will offset losses from the drop in Saat Moderate's long position.The idea behind Multimanager Lifestyle Moderate and Saat Moderate 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.
| Saat Moderate vs. Rbb Fund | Saat Moderate vs. Western Asset Municipal | Saat Moderate vs. T Rowe Price | Saat Moderate vs. Aam Select Income |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |