Correlation Between Saat Market and Catholic Values
Can any of the company-specific risk be diversified away by investing in both Saat Market and Catholic Values 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 Market and Catholic Values into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Market Growth and Catholic Values Fixed, you can compare the effects of market volatilities on Saat Market and Catholic Values 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 Market with a short position of Catholic Values. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Catholic Values.
Diversification Opportunities for Saat Market and Catholic Values
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saat and Catholic is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Catholic Values Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catholic Values Fixed and Saat Market 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 Market Growth are associated (or correlated) with Catholic Values. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catholic Values Fixed has no effect on the direction of Saat Market i.e., Saat Market and Catholic Values go up and down completely randomly.
Pair Corralation between Saat Market and Catholic Values
Assuming the 90 days horizon Saat Market Growth is expected to generate 1.1 times more return on investment than Catholic Values. However, Saat Market is 1.1 times more volatile than Catholic Values Fixed. It trades about 0.1 of its potential returns per unit of risk. Catholic Values Fixed is currently generating about 0.04 per unit of risk. If you would invest 1,108 in Saat Market Growth on August 28, 2024 and sell it today you would earn a total of 190.00 from holding Saat Market Growth or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Market Growth vs. Catholic Values Fixed
Performance |
| Timeline |
| Saat Market Growth |
| Catholic Values Fixed |
Saat Market and Catholic Values Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Catholic Values
The main advantage of trading using opposite Saat Market and Catholic Values positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market position performs unexpectedly, Catholic Values 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 Catholic Values will offset losses from the drop in Catholic Values' long position.| Saat Market vs. Simt Multi Asset Accumulation | Saat Market vs. Simt Real Return | Saat Market vs. Simt Small Cap | Saat Market vs. Siit Screened World |
| Catholic Values vs. Simt Multi Asset Accumulation | Catholic Values vs. Saat Market Growth | Catholic Values vs. Simt Real Return | Catholic Values vs. Simt Small Cap |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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