Correlation Between Simt Multi-asset and Saat Servative
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Saat Servative 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 Servative 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 Servative Strategy, you can compare the effects of market volatilities on Simt Multi-asset and Saat Servative 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 Servative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Saat Servative.
Diversification Opportunities for Simt Multi-asset and Saat Servative
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Saat is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Saat Servative Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Servative Strategy 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 Servative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Servative Strategy has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Saat Servative go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Saat Servative
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to generate 2.6 times more return on investment than Saat Servative. However, Simt Multi-asset is 2.6 times more volatile than Saat Servative Strategy. It trades about 0.45 of its potential returns per unit of risk. Saat Servative Strategy is currently generating about 0.43 per unit of risk. If you would invest 708.00 in Simt Multi Asset Accumulation on November 9, 2024 and sell it today you would earn a total of 32.00 from holding Simt Multi Asset Accumulation or generate 4.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Simt Multi Asset Accumulation vs. Saat Servative Strategy
Performance |
Timeline |
Simt Multi Asset |
Saat Servative Strategy |
Simt Multi-asset and Saat Servative Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simt Multi-asset and Saat Servative
The main advantage of trading using opposite Simt Multi-asset and Saat Servative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Saat Servative 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 Servative will offset losses from the drop in Saat Servative's long position.Simt Multi-asset vs. John Hancock Var | Simt Multi-asset vs. Deutsche Health And | Simt Multi-asset vs. Alger Health Sciences | Simt Multi-asset vs. Lord Abbett Health |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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