Correlation Between Siit Screened and Saat Core
Can any of the company-specific risk be diversified away by investing in both Siit Screened and Saat Core 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 Siit Screened and Saat Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Screened World and Saat E Market, you can compare the effects of market volatilities on Siit Screened and Saat Core 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 Siit Screened with a short position of Saat Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Screened and Saat Core.
Diversification Opportunities for Siit Screened and Saat Core
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Saat is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Siit Screened World and Saat E Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat E Market and Siit Screened 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 Siit Screened World are associated (or correlated) with Saat Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat E Market has no effect on the direction of Siit Screened i.e., Siit Screened and Saat Core go up and down completely randomly.
Pair Corralation between Siit Screened and Saat Core
Assuming the 90 days horizon Siit Screened World is expected to generate 1.76 times more return on investment than Saat Core. However, Siit Screened is 1.76 times more volatile than Saat E Market. It trades about 0.07 of its potential returns per unit of risk. Saat E Market is currently generating about 0.1 per unit of risk. If you would invest 941.00 in Siit Screened World on November 19, 2024 and sell it today you would earn a total of 240.00 from holding Siit Screened World or generate 25.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Screened World vs. Saat E Market
Performance |
| Timeline |
| Siit Screened World |
| Saat E Market |
Siit Screened and Saat Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Screened and Saat Core
The main advantage of trading using opposite Siit Screened and Saat Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Screened position performs unexpectedly, Saat Core 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 Core will offset losses from the drop in Saat Core's long position.| Siit Screened vs. Simt Mid Cap | Siit Screened vs. Saat Tax Managed Aggressive | Siit Screened vs. Sit Emerging Markets | Siit Screened vs. Simt High Yield |
| Saat Core vs. Sp Smallcap 600 | Saat Core vs. Small Pany Growth | Saat Core vs. Franklin Small Cap | Saat Core vs. Old Westbury Small |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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