Correlation Between Saat Market and Saat Conservative
Can any of the company-specific risk be diversified away by investing in both Saat Market and Saat Conservative 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 Saat Conservative 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 Saat Servative Strategy, you can compare the effects of market volatilities on Saat Market and Saat Conservative 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 Saat Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Saat Conservative.
Diversification Opportunities for Saat Market and Saat Conservative
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saat and SAAT is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Saat Servative Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Servative Strategy 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 Saat Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Servative Strategy has no effect on the direction of Saat Market i.e., Saat Market and Saat Conservative go up and down completely randomly.
Pair Corralation between Saat Market and Saat Conservative
Assuming the 90 days horizon Saat Market Growth is expected to generate 2.32 times more return on investment than Saat Conservative. However, Saat Market is 2.32 times more volatile than Saat Servative Strategy. It trades about 0.14 of its potential returns per unit of risk. Saat Servative Strategy is currently generating about 0.18 per unit of risk. If you would invest 1,122 in Saat Market Growth on September 2, 2024 and sell it today you would earn a total of 182.00 from holding Saat Market Growth or generate 16.22% 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. Saat Servative Strategy
Performance |
| Timeline |
| Saat Market Growth |
| Saat Servative Strategy |
Saat Market and Saat Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Saat Conservative
The main advantage of trading using opposite Saat Market and Saat Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market position performs unexpectedly, Saat Conservative 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 Saat Conservative will offset losses from the drop in Saat Conservative'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 |
| Saat Conservative vs. Simt Multi Asset Accumulation | Saat Conservative vs. Saat Market Growth | Saat Conservative vs. Simt Real Return | Saat Conservative 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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