Correlation Between Simt Real and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Simt Real and Saat Defensive 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 Simt Real and Saat Defensive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Real Return and Saat Defensive Strategy, you can compare the effects of market volatilities on Simt Real and Saat Defensive 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 Simt Real with a short position of Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Real and Saat Defensive.
Diversification Opportunities for Simt Real and Saat Defensive
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Saat is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Simt Real Return and Saat Defensive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Defensive Strategy and Simt Real 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 Simt Real Return are associated (or correlated) with Saat Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Defensive Strategy has no effect on the direction of Simt Real i.e., Simt Real and Saat Defensive go up and down completely randomly.
Pair Corralation between Simt Real and Saat Defensive
Assuming the 90 days horizon Simt Real is expected to generate 1.32 times less return on investment than Saat Defensive. In addition to that, Simt Real is 1.15 times more volatile than Saat Defensive Strategy. It trades about 0.13 of its total potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.21 per unit of volatility. If you would invest 967.00 in Saat Defensive Strategy on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Saat Defensive Strategy or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Real Return vs. Saat Defensive Strategy
Performance |
| Timeline |
| Simt Real Return |
| Saat Defensive Strategy |
Simt Real and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Real and Saat Defensive
The main advantage of trading using opposite Simt Real and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Real position performs unexpectedly, Saat Defensive 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 Defensive will offset losses from the drop in Saat Defensive's long position.| Simt Real vs. Simt Multi Asset Accumulation | Simt Real vs. Saat Market Growth | Simt Real vs. Simt Small Cap | Simt Real vs. Siit Screened World |
| Saat Defensive vs. Simt Multi Asset Accumulation | Saat Defensive vs. Saat Market Growth | Saat Defensive vs. Simt Real Return | Saat Defensive 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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