Correlation Between Saat Aggressive and Siit Screened
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive and Siit Screened 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 Siit Screened 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 Siit Screened World, you can compare the effects of market volatilities on Saat Aggressive and Siit Screened 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 Siit Screened. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Siit Screened.
Diversification Opportunities for Saat Aggressive and Siit Screened
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saat and Siit is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy and Siit Screened World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Screened World 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 Siit Screened. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Screened World has no effect on the direction of Saat Aggressive i.e., Saat Aggressive and Siit Screened go up and down completely randomly.
Pair Corralation between Saat Aggressive and Siit Screened
Assuming the 90 days horizon Saat Aggressive Strategy is expected to generate 0.9 times more return on investment than Siit Screened. However, Saat Aggressive Strategy is 1.11 times less risky than Siit Screened. It trades about 0.09 of its potential returns per unit of risk. Siit Screened World is currently generating about 0.05 per unit of risk. If you would invest 1,261 in Saat Aggressive Strategy on October 20, 2024 and sell it today you would earn a total of 179.00 from holding Saat Aggressive Strategy or generate 14.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Aggressive Strategy vs. Siit Screened World
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Siit Screened World |
Saat Aggressive and Siit Screened Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Siit Screened
The main advantage of trading using opposite Saat Aggressive and Siit Screened positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive position performs unexpectedly, Siit Screened 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 Siit Screened will offset losses from the drop in Siit Screened's long position.| Saat Aggressive vs. Franklin Government Money | Saat Aggressive vs. Ab Bond Inflation | Saat Aggressive vs. Dws Government Money | Saat Aggressive vs. Intermediate Term Bond Fund |
| Siit Screened vs. Inverse Government Long | Siit Screened vs. Dunham Porategovernment Bond | Siit Screened vs. Virtus Seix Government | Siit Screened vs. T Rowe Price |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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