Correlation Between Saat Aggressive and Federated Global
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive and Federated Global 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 Federated Global 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 Federated Global Allocation, you can compare the effects of market volatilities on Saat Aggressive and Federated Global 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 Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Federated Global.
Diversification Opportunities for Saat Aggressive and Federated Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and Federated is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy and Federated Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global All 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 Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global All has no effect on the direction of Saat Aggressive i.e., Saat Aggressive and Federated Global go up and down completely randomly.
Pair Corralation between Saat Aggressive and Federated Global
Assuming the 90 days horizon Saat Aggressive Strategy is expected to generate 1.07 times more return on investment than Federated Global. However, Saat Aggressive is 1.07 times more volatile than Federated Global Allocation. It trades about 0.14 of its potential returns per unit of risk. Federated Global Allocation is currently generating about 0.14 per unit of risk. If you would invest 1,423 in Saat Aggressive Strategy on August 30, 2024 and sell it today you would earn a total of 23.00 from holding Saat Aggressive Strategy or generate 1.62% 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. Federated Global Allocation
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Federated Global All |
Saat Aggressive and Federated Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Federated Global
The main advantage of trading using opposite Saat Aggressive and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive position performs unexpectedly, Federated Global 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 Federated Global will offset losses from the drop in Federated Global's long position.| Saat Aggressive vs. Federated Global Allocation | Saat Aggressive vs. Simt Sp 500 | Saat Aggressive vs. Simt Large Cap | Saat Aggressive vs. Sentinel Balanced Fund |
| Federated Global vs. Capital Income Builder | Federated Global vs. Capital Income Builder | Federated Global vs. Capital Income Builder | Federated Global vs. HUMANA INC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |