Correlation Between Simt Multi-strategy and Saat Market
Can any of the company-specific risk be diversified away by investing in both Simt Multi-strategy and Saat Market 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 Simt Multi-strategy and Saat Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Strategy Alternative and Saat Market Growth, you can compare the effects of market volatilities on Simt Multi-strategy and Saat Market 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 Simt Multi-strategy with a short position of Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-strategy and Saat Market.
Diversification Opportunities for Simt Multi-strategy and Saat Market
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simt and Saat is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Strategy Alternativ and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth and Simt Multi-strategy 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 Simt Multi Strategy Alternative are associated (or correlated) with Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Simt Multi-strategy i.e., Simt Multi-strategy and Saat Market go up and down completely randomly.
Pair Corralation between Simt Multi-strategy and Saat Market
Assuming the 90 days horizon Simt Multi-strategy is expected to generate 1.33 times less return on investment than Saat Market. But when comparing it to its historical volatility, Simt Multi Strategy Alternative is 1.77 times less risky than Saat Market. It trades about 0.15 of its potential returns per unit of risk. Saat Market Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,222 in Saat Market Growth on September 3, 2024 and sell it today you would earn a total of 82.00 from holding Saat Market Growth or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Strategy Alternativ vs. Saat Market Growth
Performance |
| Timeline |
| Simt Multi Strategy |
| Saat Market Growth |
Simt Multi-strategy and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-strategy and Saat Market
The main advantage of trading using opposite Simt Multi-strategy and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-strategy position performs unexpectedly, Saat Market 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 Market will offset losses from the drop in Saat Market's long position.| Simt Multi-strategy vs. Touchstone Small Cap | Simt Multi-strategy vs. Qs Small Capitalization | Simt Multi-strategy vs. Small Midcap Dividend Income | Simt Multi-strategy vs. Kinetics Small Cap |
| Saat Market vs. California Bond Fund | Saat Market vs. Ambrus Core Bond | Saat Market vs. T Rowe Price | Saat Market vs. Versatile Bond Portfolio |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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