Correlation Between Saat Defensive and Siit Emerging
Can any of the company-specific risk be diversified away by investing in both Saat Defensive and Siit Emerging 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 Siit Emerging 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 Siit Emerging Markets, you can compare the effects of market volatilities on Saat Defensive and Siit Emerging 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 Siit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Defensive and Siit Emerging.
Diversification Opportunities for Saat Defensive and Siit Emerging
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saat and Siit is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Saat Defensive Strategy and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets 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 Siit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Saat Defensive i.e., Saat Defensive and Siit Emerging go up and down completely randomly.
Pair Corralation between Saat Defensive and Siit Emerging
Assuming the 90 days horizon Saat Defensive Strategy is expected to generate 0.35 times more return on investment than Siit Emerging. However, Saat Defensive Strategy is 2.87 times less risky than Siit Emerging. It trades about 0.31 of its potential returns per unit of risk. Siit Emerging Markets is currently generating about 0.1 per unit of risk. If you would invest 928.00 in Saat Defensive Strategy on October 23, 2024 and sell it today you would earn a total of 5.00 from holding Saat Defensive Strategy or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Defensive Strategy vs. Siit Emerging Markets
Performance |
| Timeline |
| Saat Defensive Strategy |
| Siit Emerging Markets |
Saat Defensive and Siit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Defensive and Siit Emerging
The main advantage of trading using opposite Saat Defensive and Siit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Defensive position performs unexpectedly, Siit Emerging 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 Siit Emerging will offset losses from the drop in Siit Emerging's long position.| Saat Defensive vs. Nuveen Strategic Municipal | Saat Defensive vs. Transamerica Intermediate Muni | Saat Defensive vs. Bbh Intermediate Municipal | Saat Defensive vs. Lord Abbett Intermediate |
| Siit Emerging vs. Rbc Emerging Markets | Siit Emerging vs. Locorr Market Trend | Siit Emerging vs. Calvert Developed Market | Siit Emerging vs. Ab All Market |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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