Correlation Between Saat Moderate and Highland Longshort
Can any of the company-specific risk be diversified away by investing in both Saat Moderate and Highland Longshort 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 Moderate and Highland Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Moderate Strategy and Highland Longshort Healthcare, you can compare the effects of market volatilities on Saat Moderate and Highland Longshort 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 Moderate with a short position of Highland Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Highland Longshort.
Diversification Opportunities for Saat Moderate and Highland Longshort
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saat and Highland is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Longshort and Saat Moderate 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 Moderate Strategy are associated (or correlated) with Highland Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Longshort has no effect on the direction of Saat Moderate i.e., Saat Moderate and Highland Longshort go up and down completely randomly.
Pair Corralation between Saat Moderate and Highland Longshort
Assuming the 90 days horizon Saat Moderate Strategy is expected to generate 1.44 times more return on investment than Highland Longshort. However, Saat Moderate is 1.44 times more volatile than Highland Longshort Healthcare. It trades about 0.1 of its potential returns per unit of risk. Highland Longshort Healthcare is currently generating about 0.12 per unit of risk. If you would invest 1,032 in Saat Moderate Strategy on September 12, 2024 and sell it today you would earn a total of 161.00 from holding Saat Moderate Strategy or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Highland Longshort Healthcare
Performance |
| Timeline |
| Saat Moderate Strategy |
| Highland Longshort |
Saat Moderate and Highland Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Highland Longshort
The main advantage of trading using opposite Saat Moderate and Highland Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate position performs unexpectedly, Highland Longshort 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 Highland Longshort will offset losses from the drop in Highland Longshort's long position.| Saat Moderate vs. Vanguard Wellesley Income | Saat Moderate vs. Vanguard Wellesley Income | Saat Moderate vs. Blackrock Multi Asset Income | Saat Moderate vs. The Hartford Balanced |
| Highland Longshort vs. Saat Moderate Strategy | Highland Longshort vs. Strategic Allocation Moderate | Highland Longshort vs. Jpmorgan Smartretirement 2035 | Highland Longshort vs. Columbia Moderate Growth |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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