Correlation Between Saat Moderate and Inverse Sp
Can any of the company-specific risk be diversified away by investing in both Saat Moderate and Inverse Sp 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 Inverse Sp 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 Inverse Sp 500, you can compare the effects of market volatilities on Saat Moderate and Inverse Sp 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 Inverse Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Inverse Sp.
Diversification Opportunities for Saat Moderate and Inverse Sp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saat and Inverse is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Inverse Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse Sp 500 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 Inverse Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse Sp 500 has no effect on the direction of Saat Moderate i.e., Saat Moderate and Inverse Sp go up and down completely randomly.
Pair Corralation between Saat Moderate and Inverse Sp
Assuming the 90 days horizon Saat Moderate Strategy is expected to generate 0.37 times more return on investment than Inverse Sp. However, Saat Moderate Strategy is 2.72 times less risky than Inverse Sp. It trades about 0.07 of its potential returns per unit of risk. Inverse Sp 500 is currently generating about -0.16 per unit of risk. If you would invest 1,180 in Saat Moderate Strategy on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Saat Moderate Strategy or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Inverse Sp 500
Performance |
| Timeline |
| Saat Moderate Strategy |
| Inverse Sp 500 |
Saat Moderate and Inverse Sp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Inverse Sp
The main advantage of trading using opposite Saat Moderate and Inverse Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate position performs unexpectedly, Inverse Sp 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 Inverse Sp will offset losses from the drop in Inverse Sp's long position.| Saat Moderate vs. Simt Multi Asset Accumulation | Saat Moderate vs. Saat Market Growth | Saat Moderate vs. Simt Real Return | Saat Moderate vs. Simt Small Cap |
| Inverse Sp vs. Ab Global Risk | Inverse Sp vs. Ab Global Risk | Inverse Sp vs. Morningstar Global Income | Inverse Sp vs. Mirova Global Green |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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