Correlation Between Saat Market and Simt High
Can any of the company-specific risk be diversified away by investing in both Saat Market and Simt High 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 Simt High 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 Simt High Yield, you can compare the effects of market volatilities on Saat Market and Simt High 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 Simt High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Simt High.
Diversification Opportunities for Saat Market and Simt High
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saat and Simt is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Simt High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt High Yield 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 Simt High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt High Yield has no effect on the direction of Saat Market i.e., Saat Market and Simt High go up and down completely randomly.
Pair Corralation between Saat Market and Simt High
Assuming the 90 days horizon Saat Market Growth is expected to generate 1.58 times more return on investment than Simt High. However, Saat Market is 1.58 times more volatile than Simt High Yield. It trades about 0.1 of its potential returns per unit of risk. Simt High Yield is currently generating about 0.13 per unit of risk. If you would invest 1,084 in Saat Market Growth on August 26, 2024 and sell it today you would earn a total of 208.00 from holding Saat Market Growth or generate 19.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Market Growth vs. Simt High Yield
Performance |
| Timeline |
| Saat Market Growth |
| Simt High Yield |
Saat Market and Simt High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Simt High
The main advantage of trading using opposite Saat Market and Simt High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market position performs unexpectedly, Simt High 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 Simt High will offset losses from the drop in Simt High'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 |
| Simt High vs. Artisan High Income | Simt High vs. Sit Emerging Markets | Simt High vs. Sit International Equity | Simt High vs. Stet Intermediate Term |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |