Correlation Between Saat E and Simt Large
Can any of the company-specific risk be diversified away by investing in both Saat E and Simt Large 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 E and Simt Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat E Market and Simt Large Cap, you can compare the effects of market volatilities on Saat E and Simt Large 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 E with a short position of Simt Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat E and Simt Large.
Diversification Opportunities for Saat E and Simt Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Simt is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Saat E Market and Simt Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Large Cap and Saat E 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 E Market are associated (or correlated) with Simt Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Large Cap has no effect on the direction of Saat E i.e., Saat E and Simt Large go up and down completely randomly.
Pair Corralation between Saat E and Simt Large
Assuming the 90 days horizon Saat E Market is expected to generate 0.56 times more return on investment than Simt Large. However, Saat E Market is 1.79 times less risky than Simt Large. It trades about 0.29 of its potential returns per unit of risk. Simt Large Cap is currently generating about 0.15 per unit of risk. If you would invest 1,959 in Saat E Market on November 9, 2024 and sell it today you would earn a total of 72.00 from holding Saat E Market or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat E Market vs. Simt Large Cap
Performance |
| Timeline |
| Saat E Market |
| Simt Large Cap |
Saat E and Simt Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat E and Simt Large
The main advantage of trading using opposite Saat E and Simt Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat E position performs unexpectedly, Simt Large 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 Simt Large will offset losses from the drop in Simt Large's long position.| Saat E vs. Saat Tax Managed Aggressive | Saat E vs. Saat Market Growth | Saat E vs. Saat Moderate Strategy | Saat E vs. Simt Tax Managed Managed |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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