Correlation Between Saat Market and Siit Multi
Can any of the company-specific risk be diversified away by investing in both Saat Market and Siit Multi 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 Siit Multi 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 Siit Multi Asset Real, you can compare the effects of market volatilities on Saat Market and Siit Multi 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 Siit Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Siit Multi.
Diversification Opportunities for Saat Market and Siit Multi
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saat and Siit is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Siit Multi Asset Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Multi Asset 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 Siit Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Multi Asset has no effect on the direction of Saat Market i.e., Saat Market and Siit Multi go up and down completely randomly.
Pair Corralation between Saat Market and Siit Multi
Assuming the 90 days horizon Saat Market Growth is expected to generate 1.16 times more return on investment than Siit Multi. However, Saat Market is 1.16 times more volatile than Siit Multi Asset Real. It trades about 0.22 of its potential returns per unit of risk. Siit Multi Asset Real is currently generating about 0.08 per unit of risk. If you would invest 1,286 in Saat Market Growth on September 14, 2024 and sell it today you would earn a total of 16.00 from holding Saat Market Growth or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Market Growth vs. Siit Multi Asset Real
Performance |
| Timeline |
| Saat Market Growth |
| Siit Multi Asset |
Saat Market and Siit Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Siit Multi
The main advantage of trading using opposite Saat Market and Siit Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market position performs unexpectedly, Siit Multi 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 Siit Multi will offset losses from the drop in Siit Multi's 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 |
| Siit Multi vs. Simt Multi Asset Accumulation | Siit Multi vs. Saat Market Growth | Siit Multi vs. Simt Real Return | Siit Multi 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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