Correlation Between Saat Market and Siit Emerging
Can any of the company-specific risk be diversified away by investing in both Saat Market and Siit Emerging 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 Emerging 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 Emerging Markets, you can compare the effects of market volatilities on Saat Market and Siit Emerging 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 Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Siit Emerging.
Diversification Opportunities for Saat Market and Siit Emerging
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SAAT and Siit is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets 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 Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Saat Market i.e., Saat Market and Siit Emerging go up and down completely randomly.
Pair Corralation between Saat Market and Siit Emerging
Assuming the 90 days horizon Saat Market Growth is expected to generate 0.63 times more return on investment than Siit Emerging. However, Saat Market Growth is 1.59 times less risky than Siit Emerging. It trades about 0.15 of its potential returns per unit of risk. Siit Emerging Markets is currently generating about -0.16 per unit of risk. If you would invest 1,281 in Saat Market Growth on August 29, 2024 and sell it today you would earn a total of 17.00 from holding Saat Market Growth or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Saat Market Growth vs. Siit Emerging Markets
Performance |
| Timeline |
| Saat Market Growth |
| Siit Emerging Markets |
Saat Market and Siit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Siit Emerging
The main advantage of trading using opposite Saat Market and Siit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market position performs unexpectedly, Siit Emerging 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 Emerging will offset losses from the drop in Siit Emerging's long position.| Saat Market vs. Rbc Emerging Markets | Saat Market vs. Shelton Emerging Markets | Saat Market vs. Federated Emerging Market | Saat Market vs. Barings Emerging Markets |
| Siit Emerging vs. Firsthand Technology Opportunities | Siit Emerging vs. Global Technology Portfolio | Siit Emerging vs. Towpath Technology | Siit Emerging vs. Science Technology Fund |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |