Correlation Between Simt Core and Saat Moderate
Can any of the company-specific risk be diversified away by investing in both Simt Core and Saat Moderate 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 Core and Saat Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt E Fixed and Saat Moderate Strategy, you can compare the effects of market volatilities on Simt Core and Saat Moderate 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 Core with a short position of Saat Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Core and Saat Moderate.
Diversification Opportunities for Simt Core and Saat Moderate
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SIMT and Saat is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Simt E Fixed and Saat Moderate Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Moderate Strategy and Simt Core 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 E Fixed are associated (or correlated) with Saat Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Moderate Strategy has no effect on the direction of Simt Core i.e., Simt Core and Saat Moderate go up and down completely randomly.
Pair Corralation between Simt Core and Saat Moderate
Assuming the 90 days horizon Simt E Fixed is expected to generate 0.92 times more return on investment than Saat Moderate. However, Simt E Fixed is 1.09 times less risky than Saat Moderate. It trades about 0.32 of its potential returns per unit of risk. Saat Moderate Strategy is currently generating about 0.11 per unit of risk. If you would invest 939.00 in Simt E Fixed on December 1, 2024 and sell it today you would earn a total of 21.00 from holding Simt E Fixed or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt E Fixed vs. Saat Moderate Strategy
Performance |
| Timeline |
| Simt E Fixed |
| Saat Moderate Strategy |
Simt Core and Saat Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Core and Saat Moderate
The main advantage of trading using opposite Simt Core and Saat Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Core position performs unexpectedly, Saat Moderate 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 Moderate will offset losses from the drop in Saat Moderate's long position.| Simt Core vs. Sit Emerging Markets | Simt Core vs. Simt Multi Asset Income | Simt Core vs. Sit International Equity | Simt Core vs. Simt Global Managed |
| Saat Moderate vs. Simt Managed Volatility | Saat Moderate vs. Simt Managed Volatility | Saat Moderate vs. Hennessy Focus Fund | Saat Moderate vs. The Disciplined Growth |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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