Correlation Between Saat Market and Siit Small
Can any of the company-specific risk be diversified away by investing in both Saat Market and Siit Small 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 Small 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 Small Mid, you can compare the effects of market volatilities on Saat Market and Siit Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Siit Small.
Diversification Opportunities for Saat Market and Siit Small
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saat and Siit is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Siit Small Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Small Mid 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Small Mid has no effect on the direction of Saat Market i.e., Saat Market and Siit Small go up and down completely randomly.
Pair Corralation between Saat Market and Siit Small
Assuming the 90 days horizon Saat Market is expected to generate 1.03 times less return on investment than Siit Small. But when comparing it to its historical volatility, Saat Market Growth is 2.3 times less risky than Siit Small. It trades about 0.08 of its potential returns per unit of risk. Siit Small Mid is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 858.00 in Siit Small Mid on November 28, 2024 and sell it today you would earn a total of 141.00 from holding Siit Small Mid or generate 16.43% 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. Siit Small Mid
Performance |
| Timeline |
| Saat Market Growth |
| Siit Small Mid |
Saat Market and Siit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Siit Small
The main advantage of trading using opposite Saat Market and Siit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market position performs unexpectedly, Siit Small 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 Small will offset losses from the drop in Siit Small's long position.| Saat Market vs. Nexpoint Real Estate | Saat Market vs. Amg Managers Centersquare | Saat Market vs. Nomura Real Estate | Saat Market vs. Nexpoint Real Estate |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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