Correlation Between Sa Real and Total Return
Can any of the company-specific risk be diversified away by investing in both Sa Real and Total Return 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 Sa Real and Total Return into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sa Real Estate and Total Return Fund, you can compare the effects of market volatilities on Sa Real and Total Return 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 Sa Real with a short position of Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sa Real and Total Return.
Diversification Opportunities for Sa Real and Total Return
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SAREX and Total is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sa Real Estate and Total Return Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return and Sa Real 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 Sa Real Estate are associated (or correlated) with Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return has no effect on the direction of Sa Real i.e., Sa Real and Total Return go up and down completely randomly.
Pair Corralation between Sa Real and Total Return
Assuming the 90 days horizon Sa Real Estate is expected to generate 2.74 times more return on investment than Total Return. However, Sa Real is 2.74 times more volatile than Total Return Fund. It trades about 0.07 of its potential returns per unit of risk. Total Return Fund is currently generating about 0.07 per unit of risk. If you would invest 979.00 in Sa Real Estate on September 12, 2024 and sell it today you would earn a total of 254.00 from holding Sa Real Estate or generate 25.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Sa Real Estate vs. Total Return Fund
Performance |
| Timeline |
| Sa Real Estate |
| Total Return |
Sa Real and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sa Real and Total Return
The main advantage of trading using opposite Sa Real and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa Real position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return's long position.| Sa Real vs. Guggenheim Risk Managed | Sa Real vs. HUMANA INC | Sa Real vs. Barloworld Ltd ADR | Sa Real vs. Morningstar Unconstrained Allocation |
| Total Return vs. Sa Real Estate | Total Return vs. Virtus Real Estate | Total Return vs. Goldman Sachs Real | Total Return vs. Guggenheim Risk Managed |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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