Correlation Between Saat Aggressive and Sdit Gnma
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive and Sdit Gnma 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 Aggressive and Sdit Gnma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Aggressive Strategy and Sdit Gnma Fund, you can compare the effects of market volatilities on Saat Aggressive and Sdit Gnma 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 Aggressive with a short position of Sdit Gnma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Sdit Gnma.
Diversification Opportunities for Saat Aggressive and Sdit Gnma
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saat and Sdit is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy and Sdit Gnma Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sdit Gnma Fund and Saat Aggressive 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 Aggressive Strategy are associated (or correlated) with Sdit Gnma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sdit Gnma Fund has no effect on the direction of Saat Aggressive i.e., Saat Aggressive and Sdit Gnma go up and down completely randomly.
Pair Corralation between Saat Aggressive and Sdit Gnma
Assuming the 90 days horizon Saat Aggressive Strategy is expected to generate 1.32 times more return on investment than Sdit Gnma. However, Saat Aggressive is 1.32 times more volatile than Sdit Gnma Fund. It trades about 0.08 of its potential returns per unit of risk. Sdit Gnma Fund is currently generating about 0.02 per unit of risk. If you would invest 1,212 in Saat Aggressive Strategy on September 3, 2024 and sell it today you would earn a total of 303.00 from holding Saat Aggressive Strategy or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Aggressive Strategy vs. Sdit Gnma Fund
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Sdit Gnma Fund |
Saat Aggressive and Sdit Gnma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Sdit Gnma
The main advantage of trading using opposite Saat Aggressive and Sdit Gnma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive position performs unexpectedly, Sdit Gnma 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 Sdit Gnma will offset losses from the drop in Sdit Gnma's long position.| Saat Aggressive vs. Saat Market Growth | Saat Aggressive vs. Saat Moderate Strategy | Saat Aggressive vs. Saat Servative Strategy | Saat Aggressive vs. Simt Large Cap |
| Sdit Gnma vs. Blackrock Health Sciences | Sdit Gnma vs. Allianzgi Health Sciences | Sdit Gnma vs. Lord Abbett Health | Sdit Gnma vs. Health Biotchnology Portfolio |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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