Correlation Between Simt High and Saat Market
Can any of the company-specific risk be diversified away by investing in both Simt High and Saat Market 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 High and Saat Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt High Yield and Saat Market Growth, you can compare the effects of market volatilities on Simt High and Saat Market 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 High with a short position of Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt High and Saat Market.
Diversification Opportunities for Simt High and Saat Market
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simt and Saat is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Simt High Yield and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth and Simt High 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 High Yield are associated (or correlated) with Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Simt High i.e., Simt High and Saat Market go up and down completely randomly.
Pair Corralation between Simt High and Saat Market
Assuming the 90 days horizon Simt High is expected to generate 1.62 times less return on investment than Saat Market. But when comparing it to its historical volatility, Simt High Yield is 2.48 times less risky than Saat Market. It trades about 0.15 of its potential returns per unit of risk. Saat Market Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,527 in Saat Market Growth on September 14, 2024 and sell it today you would earn a total of 464.00 from holding Saat Market Growth or generate 18.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt High Yield vs. Saat Market Growth
Performance |
| Timeline |
| Simt High Yield |
| Saat Market Growth |
Simt High and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt High and Saat Market
The main advantage of trading using opposite Simt High and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt High position performs unexpectedly, Saat Market 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 Market will offset losses from the drop in Saat Market's long position.| Simt High vs. Artisan High Income | Simt High vs. Sit Emerging Markets | Simt High vs. Sit International Equity | Simt High vs. Stet Intermediate Term |
| Saat Market vs. Simt Mid Cap | Saat Market vs. Saat Tax Managed Aggressive | Saat Market vs. Sit Emerging Markets | Saat Market vs. Simt 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Correlations Find global opportunities by holding instruments from different markets |