Correlation Between Saat Moderate and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Saat Moderate and Floating Rate 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 Floating Rate 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 Floating Rate Fund, you can compare the effects of market volatilities on Saat Moderate and Floating Rate 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 Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Floating Rate.
Diversification Opportunities for Saat Moderate and Floating Rate
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Saat and Floating is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate 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 Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Saat Moderate i.e., Saat Moderate and Floating Rate go up and down completely randomly.
Pair Corralation between Saat Moderate and Floating Rate
Assuming the 90 days horizon Saat Moderate Strategy is expected to generate 1.78 times more return on investment than Floating Rate. However, Saat Moderate is 1.78 times more volatile than Floating Rate Fund. It trades about 0.3 of its potential returns per unit of risk. Floating Rate Fund is currently generating about 0.05 per unit of risk. If you would invest 1,162 in Saat Moderate Strategy on November 27, 2024 and sell it today you would earn a total of 16.00 from holding Saat Moderate Strategy or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Floating Rate Fund
Performance |
| Timeline |
| Saat Moderate Strategy |
| Floating Rate |
Saat Moderate and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Floating Rate
The main advantage of trading using opposite Saat Moderate and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Saat Moderate vs. The Hartford Servative | Saat Moderate vs. Transamerica Asset Allocation | Saat Moderate vs. Alternative Asset Allocation | Saat Moderate vs. Guidemark Large Cap |
| Floating Rate vs. Tiaa Cref Funds | Floating Rate vs. Schwab Government Money | Floating Rate vs. John Hancock Money | Floating Rate vs. Collegeadvantage 529 Savings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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