Correlation Between Multi Manager and Saat Moderate
Can any of the company-specific risk be diversified away by investing in both Multi Manager 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 Multi Manager and Saat Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager Global Listed and Saat Moderate Strategy, you can compare the effects of market volatilities on Multi Manager 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 Multi Manager with a short position of Saat Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Manager and Saat Moderate.
Diversification Opportunities for Multi Manager and Saat Moderate
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Multi and Saat is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Global Listed 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 Multi Manager 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 Multi Manager Global Listed 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 Multi Manager i.e., Multi Manager and Saat Moderate go up and down completely randomly.
Pair Corralation between Multi Manager and Saat Moderate
Assuming the 90 days horizon Multi Manager Global Listed is expected to under-perform the Saat Moderate. In addition to that, Multi Manager is 3.67 times more volatile than Saat Moderate Strategy. It trades about -0.06 of its total potential returns per unit of risk. Saat Moderate Strategy is currently generating about 0.21 per unit of volatility. If you would invest 1,184 in Saat Moderate Strategy on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Saat Moderate Strategy or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Multi Manager Global Listed vs. Saat Moderate Strategy
Performance |
| Timeline |
| Multi Manager Global |
| Saat Moderate Strategy |
Multi Manager and Saat Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Manager and Saat Moderate
The main advantage of trading using opposite Multi Manager and Saat Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Manager 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.| Multi Manager vs. Saat Moderate Strategy | Multi Manager vs. Franklin Lifesmart Retirement | Multi Manager vs. Dimensional Retirement Income | Multi Manager vs. Fidelity Managed Retirement |
| Saat Moderate vs. Vanguard Wellesley Income | Saat Moderate vs. Blackrock Multi Asset Income | Saat Moderate vs. The Hartford Balanced | Saat Moderate vs. The Hartford Balanced |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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