Correlation Between Saat Defensive and Catalystmillburn
Can any of the company-specific risk be diversified away by investing in both Saat Defensive and Catalystmillburn 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 Defensive and Catalystmillburn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Defensive Strategy and Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Saat Defensive and Catalystmillburn 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 Defensive with a short position of Catalystmillburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Defensive and Catalystmillburn.
Diversification Opportunities for Saat Defensive and Catalystmillburn
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saat and Catalystmillburn is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Saat Defensive Strategy and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge and Saat Defensive 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 Defensive Strategy are associated (or correlated) with Catalystmillburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Saat Defensive i.e., Saat Defensive and Catalystmillburn go up and down completely randomly.
Pair Corralation between Saat Defensive and Catalystmillburn
Assuming the 90 days horizon Saat Defensive is expected to generate 1.34 times less return on investment than Catalystmillburn. But when comparing it to its historical volatility, Saat Defensive Strategy is 5.16 times less risky than Catalystmillburn. It trades about 0.14 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,521 in Catalystmillburn Hedge Strategy on November 2, 2024 and sell it today you would earn a total of 429.00 from holding Catalystmillburn Hedge Strategy or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Defensive Strategy vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Saat Defensive Strategy |
| Catalystmillburn Hedge |
Saat Defensive and Catalystmillburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Defensive and Catalystmillburn
The main advantage of trading using opposite Saat Defensive and Catalystmillburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Defensive position performs unexpectedly, Catalystmillburn 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 Catalystmillburn will offset losses from the drop in Catalystmillburn's long position.| Saat Defensive vs. Saat Tax Managed Aggressive | Saat Defensive vs. Saat Market Growth | Saat Defensive vs. Saat Aggressive Strategy | Saat Defensive vs. Saat Aggressive Strategy |
| Catalystmillburn vs. Allianzgi Convertible Income | Catalystmillburn vs. Gabelli Convertible And | Catalystmillburn vs. Advent Claymore Convertible | Catalystmillburn vs. Columbia Convertible Securities |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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