Correlation Between Saat Aggressive and Simt E
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive and Simt E 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 Simt E 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 Simt E Fixed, you can compare the effects of market volatilities on Saat Aggressive and Simt E 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 Simt E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Simt E.
Diversification Opportunities for Saat Aggressive and Simt E
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saat and Simt is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy and Simt E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt E Fixed 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 Simt E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt E Fixed has no effect on the direction of Saat Aggressive i.e., Saat Aggressive and Simt E go up and down completely randomly.
Pair Corralation between Saat Aggressive and Simt E
Assuming the 90 days horizon Saat Aggressive Strategy is expected to generate 1.82 times more return on investment than Simt E. However, Saat Aggressive is 1.82 times more volatile than Simt E Fixed. It trades about 0.03 of its potential returns per unit of risk. Simt E Fixed is currently generating about -0.02 per unit of risk. If you would invest 1,408 in Saat Aggressive Strategy on October 19, 2024 and sell it today you would earn a total of 11.00 from holding Saat Aggressive Strategy or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Aggressive Strategy vs. Simt E Fixed
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Simt E Fixed |
Saat Aggressive and Simt E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Simt E
The main advantage of trading using opposite Saat Aggressive and Simt E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive position performs unexpectedly, Simt E 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 Simt E will offset losses from the drop in Simt E'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 |
| Simt E vs. Sit Emerging Markets | Simt E vs. Simt Multi Asset Income | Simt E vs. Sit International Equity | Simt E vs. Simt Global Managed |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |