Correlation Between Sit International and Saat Moderate
Can any of the company-specific risk be diversified away by investing in both Sit International and Saat Moderate 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 Sit International and Saat Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit International Equity and Saat Moderate Strategy, you can compare the effects of market volatilities on Sit International and Saat Moderate 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 Sit International with a short position of Saat Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit International and Saat Moderate.
Diversification Opportunities for Sit International and Saat Moderate
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sit and Saat is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sit International Equity and Saat Moderate Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Moderate Strategy and Sit International 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 Sit International Equity are associated (or correlated) with Saat Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Moderate Strategy has no effect on the direction of Sit International i.e., Sit International and Saat Moderate go up and down completely randomly.
Pair Corralation between Sit International and Saat Moderate
Assuming the 90 days horizon Sit International Equity is expected to under-perform the Saat Moderate. In addition to that, Sit International is 2.49 times more volatile than Saat Moderate Strategy. It trades about -0.27 of its total potential returns per unit of risk. Saat Moderate Strategy is currently generating about 0.12 per unit of volatility. If you would invest 1,178 in Saat Moderate Strategy on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Saat Moderate Strategy or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit International Equity vs. Saat Moderate Strategy
Performance |
| Timeline |
| Sit International Equity |
| Saat Moderate Strategy |
Sit International and Saat Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit International and Saat Moderate
The main advantage of trading using opposite Sit International and Saat Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit International position performs unexpectedly, Saat Moderate 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 Moderate will offset losses from the drop in Saat Moderate's long position.| Sit International vs. Sit Emerging Markets | Sit International vs. Simt E Fixed | Sit International vs. Simt Multi Asset Income | Sit International vs. Simt Global Managed |
| Saat Moderate vs. Rbb Fund | Saat Moderate vs. Falcon Focus Scv | Saat Moderate vs. Abr 7525 Volatility | Saat Moderate vs. Scharf Global Opportunity |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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