Correlation Between Sei Insti and Saat Market

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Can any of the company-specific risk be diversified away by investing in both Sei Insti 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 Sei Insti and Saat Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sei Insti Mgd and Saat Market Growth, you can compare the effects of market volatilities on Sei Insti 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 Sei Insti with a short position of Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sei Insti and Saat Market.

Diversification Opportunities for Sei Insti and Saat Market

SeiSAATDiversified AwaySeiSAATDiversified Away100%
0.87
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Sei and SAAT is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sei Insti Mgd 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 Sei Insti 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 Sei Insti Mgd 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 Sei Insti i.e., Sei Insti and Saat Market go up and down completely randomly.

Pair Corralation between Sei Insti and Saat Market

Assuming the 90 days horizon Sei Insti Mgd is expected to generate 0.5 times more return on investment than Saat Market. However, Sei Insti Mgd is 1.99 times less risky than Saat Market. It trades about 0.02 of its potential returns per unit of risk. Saat Market Growth is currently generating about -0.02 per unit of risk. If you would invest  942.00  in Sei Insti Mgd on November 26, 2024 and sell it today you would earn a total of  4.00  from holding Sei Insti Mgd or generate 0.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Sei Insti Mgd  vs.  Saat Market Growth

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -3-2-1012
JavaScript chart by amCharts 3.21.15SCXIX SMGSX
       Timeline  
Sei Insti Mgd 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sei Insti Mgd are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Sei Insti is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9.259.39.359.49.459.59.55
Saat Market Growth 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Saat Market Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Saat Market is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1212.112.212.312.412.512.6

Sei Insti and Saat Market Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.01-0.72-0.43-0.140.00.130.420.711.01.29 0.51.01.52.02.53.03.5
JavaScript chart by amCharts 3.21.15SCXIX SMGSX
       Returns  

Pair Trading with Sei Insti and Saat Market

The main advantage of trading using opposite Sei Insti and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sei Insti 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.
The idea behind Sei Insti Mgd and Saat Market Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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