Correlation Between Saat Moderate and Saat Aggressive
Can any of the company-specific risk be diversified away by investing in both Saat Moderate and Saat Aggressive 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 Saat Aggressive 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 Saat Aggressive Strategy, you can compare the effects of market volatilities on Saat Moderate and Saat Aggressive 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 Saat Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Saat Aggressive.
Diversification Opportunities for Saat Moderate and Saat Aggressive
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saat and Saat is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Saat Aggressive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Aggressive Strategy 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 Saat Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Aggressive Strategy has no effect on the direction of Saat Moderate i.e., Saat Moderate and Saat Aggressive go up and down completely randomly.
Pair Corralation between Saat Moderate and Saat Aggressive
Assuming the 90 days horizon Saat Moderate is expected to generate 1.56 times less return on investment than Saat Aggressive. But when comparing it to its historical volatility, Saat Moderate Strategy is 2.08 times less risky than Saat Aggressive. It trades about 0.14 of its potential returns per unit of risk. Saat Aggressive Strategy is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,214 in Saat Aggressive Strategy on September 12, 2024 and sell it today you would earn a total of 267.00 from holding Saat Aggressive Strategy or generate 21.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Saat Aggressive Strategy
Performance |
| Timeline |
| Saat Moderate Strategy |
| Saat Aggressive Strategy |
Saat Moderate and Saat Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Saat Aggressive
The main advantage of trading using opposite Saat Moderate and Saat Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate position performs unexpectedly, Saat Aggressive 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 Aggressive will offset losses from the drop in Saat Aggressive's long position.| Saat Moderate vs. Vanguard Wellesley Income | Saat Moderate vs. Blackrock Multi Asset Income | Saat Moderate vs. The Hartford Balanced | Saat Moderate vs. The Hartford Balanced |
| Saat Aggressive vs. Pro Blend Moderate Term | Saat Aggressive vs. Blackrock Moderate Prepared | Saat Aggressive vs. Saat Moderate Strategy | Saat Aggressive 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |