Correlation Between Simt Mid and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Simt Mid and Saat Defensive 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 Simt Mid and Saat Defensive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Mid Cap and Saat Defensive Strategy, you can compare the effects of market volatilities on Simt Mid and Saat Defensive 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 Simt Mid with a short position of Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Mid and Saat Defensive.
Diversification Opportunities for Simt Mid and Saat Defensive
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simt and Saat is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Simt Mid Cap and Saat Defensive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Defensive Strategy and Simt Mid 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 Simt Mid Cap are associated (or correlated) with Saat Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Defensive Strategy has no effect on the direction of Simt Mid i.e., Simt Mid and Saat Defensive go up and down completely randomly.
Pair Corralation between Simt Mid and Saat Defensive
Assuming the 90 days horizon Simt Mid Cap is expected to generate 9.68 times more return on investment than Saat Defensive. However, Simt Mid is 9.68 times more volatile than Saat Defensive Strategy. It trades about 0.42 of its potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.38 per unit of risk. If you would invest 3,220 in Simt Mid Cap on September 3, 2024 and sell it today you would earn a total of 261.00 from holding Simt Mid Cap or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Mid Cap vs. Saat Defensive Strategy
Performance |
| Timeline |
| Simt Mid Cap |
| Saat Defensive Strategy |
Simt Mid and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Mid and Saat Defensive
The main advantage of trading using opposite Simt Mid and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Mid position performs unexpectedly, Saat Defensive 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 Defensive will offset losses from the drop in Saat Defensive's long position.| Simt Mid vs. Simt Mid Cap | Simt Mid vs. Simt Mid Cap | Simt Mid vs. Victory Sycamore Established | Simt Mid vs. Jpmorgan Value Advantage |
| Saat Defensive vs. Vanguard Star Fund | Saat Defensive vs. Goldman Sachs High | Saat Defensive vs. Metropolitan West High | Saat Defensive vs. Calvert High Yield |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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