Correlation Between Saat Market and Sit International
Can any of the company-specific risk be diversified away by investing in both Saat Market and Sit International 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 Sit International 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 Sit International Equity, you can compare the effects of market volatilities on Saat Market and Sit International 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 Sit International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Sit International.
Diversification Opportunities for Saat Market and Sit International
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and Sit is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Sit International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit International Equity 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 Sit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit International Equity has no effect on the direction of Saat Market i.e., Saat Market and Sit International go up and down completely randomly.
Pair Corralation between Saat Market and Sit International
Assuming the 90 days horizon Saat Market Growth is expected to generate 0.5 times more return on investment than Sit International. However, Saat Market Growth is 1.99 times less risky than Sit International. It trades about -0.04 of its potential returns per unit of risk. Sit International Equity is currently generating about -0.14 per unit of risk. If you would invest 1,269 in Saat Market Growth on October 20, 2024 and sell it today you would lose (23.00) from holding Saat Market Growth or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Market Growth vs. Sit International Equity
Performance |
| Timeline |
| Saat Market Growth |
| Sit International Equity |
Saat Market and Sit International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Sit International
The main advantage of trading using opposite Saat Market and Sit International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market position performs unexpectedly, Sit International 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 Sit International will offset losses from the drop in Sit International's long position.| Saat Market vs. Tiaa Cref Real Estate | Saat Market vs. Forum Real Estate | Saat Market vs. Rreef Property Trust | Saat Market vs. Columbia Real Estate |
| Sit International vs. Sit Emerging Markets | Sit International vs. Simt E Fixed | Sit International vs. Simt Multi Asset Income | Sit International vs. Simt Global Managed |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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