Correlation Between Saat Aggressive and Saat Market
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive 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 Saat Aggressive and Saat Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Aggressive Strategy and Saat Market Growth, you can compare the effects of market volatilities on Saat Aggressive 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 Saat Aggressive with a short position of Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Saat Market.
Diversification Opportunities for Saat Aggressive and Saat Market
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and Saat is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy 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 Saat Aggressive 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 Saat Aggressive Strategy 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 Saat Aggressive i.e., Saat Aggressive and Saat Market go up and down completely randomly.
Pair Corralation between Saat Aggressive and Saat Market
Assuming the 90 days horizon Saat Aggressive Strategy is expected to generate 0.95 times more return on investment than Saat Market. However, Saat Aggressive Strategy is 1.05 times less risky than Saat Market. It trades about 0.11 of its potential returns per unit of risk. Saat Market Growth is currently generating about 0.04 per unit of risk. If you would invest 1,412 in Saat Aggressive Strategy on November 1, 2024 and sell it today you would earn a total of 57.00 from holding Saat Aggressive Strategy or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Aggressive Strategy vs. Saat Market Growth
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Saat Market Growth |
Saat Aggressive and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Saat Market
The main advantage of trading using opposite Saat Aggressive and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive 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.| Saat Aggressive vs. Old Westbury Municipal | Saat Aggressive vs. Oklahoma Municipal Fund | Saat Aggressive vs. American High Income Municipal | Saat Aggressive vs. Lord Abbett Intermediate |
| Saat Market vs. Simt Multi Asset Accumulation | Saat Market vs. Saat Market Growth | Saat Market vs. Simt Real Return | Saat Market vs. Simt Small Cap |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |