Correlation Between Simt Multi-asset and Saat Market
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Saat Market 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 Simt Multi-asset and Saat Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Accumulation and Saat Market Growth, you can compare the effects of market volatilities on Simt Multi-asset and Saat Market 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 Simt Multi-asset with a short position of Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Saat Market.
Diversification Opportunities for Simt Multi-asset and Saat Market
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Simt and SAAT is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth and Simt Multi-asset 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 Simt Multi Asset Accumulation are associated (or correlated) with Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Saat Market go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Saat Market
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to under-perform the Saat Market. In addition to that, Simt Multi-asset is 1.22 times more volatile than Saat Market Growth. It trades about -0.14 of its total potential returns per unit of risk. Saat Market Growth is currently generating about 0.01 per unit of volatility. If you would invest 1,297 in Saat Market Growth on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Saat Market Growth or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Accumulation vs. Saat Market Growth
Performance |
| Timeline |
| Simt Multi Asset |
| Saat Market Growth |
Simt Multi-asset and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Saat Market
The main advantage of trading using opposite Simt Multi-asset and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Saat Market 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 Market will offset losses from the drop in Saat Market's long position.| Simt Multi-asset vs. Astor Longshort Fund | Simt Multi-asset vs. California Bond Fund | Simt Multi-asset vs. Kinetics Market Opportunities | Simt Multi-asset vs. Bbh Intermediate Municipal |
| Saat Market vs. Rbc Emerging Markets | Saat Market vs. Shelton Emerging Markets | Saat Market vs. Federated Emerging Market | Saat Market vs. Barings Emerging Markets |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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