Correlation Between Saat Core and Saat Market
Can any of the company-specific risk be diversified away by investing in both Saat Core 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 Core 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 E Market and Saat Market Growth, you can compare the effects of market volatilities on Saat Core 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 Core with a short position of Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Core and Saat Market.
Diversification Opportunities for Saat Core and Saat Market
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and Saat is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Saat E Market 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 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 Saat E Market 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 Core i.e., Saat Core and Saat Market go up and down completely randomly.
Pair Corralation between Saat Core and Saat Market
Assuming the 90 days horizon Saat E Market is expected to generate 0.79 times more return on investment than Saat Market. However, Saat E Market is 1.26 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 0.09 per unit of risk. If you would invest 1,131 in Saat E Market on November 9, 2024 and sell it today you would earn a total of 142.00 from holding Saat E Market or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Saat E Market vs. Saat Market Growth
Performance |
| Timeline |
| Saat E Market |
| Saat Market Growth |
Saat Core and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Core and Saat Market
The main advantage of trading using opposite Saat Core and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Core 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 Core vs. Transamerica International Small | Saat Core vs. Lebenthal Lisanti Small | Saat Core vs. Ab Small Cap | Saat Core vs. Sp Smallcap 600 |
| Saat Market vs. Balanced Strategy Fund | Saat Market vs. Artisan Developing World | Saat Market vs. Transamerica Emerging Markets | Saat Market vs. Jpmorgan Emerging Markets |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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