Correlation Between Saat Aggressive and Saat Tax-managed
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive and Saat Tax-managed 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 Saat Tax-managed 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 Saat Tax Managed Aggressive, you can compare the effects of market volatilities on Saat Aggressive and Saat Tax-managed 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 Saat Tax-managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Saat Tax-managed.
Diversification Opportunities for Saat Aggressive and Saat Tax-managed
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and Saat is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy and Saat Tax Managed Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Tax Managed 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 Saat Tax-managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Tax Managed has no effect on the direction of Saat Aggressive i.e., Saat Aggressive and Saat Tax-managed go up and down completely randomly.
Pair Corralation between Saat Aggressive and Saat Tax-managed
Assuming the 90 days horizon Saat Aggressive is expected to generate 1.04 times less return on investment than Saat Tax-managed. But when comparing it to its historical volatility, Saat Aggressive Strategy is 1.04 times less risky than Saat Tax-managed. It trades about 0.17 of its potential returns per unit of risk. Saat Tax Managed Aggressive is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,582 in Saat Tax Managed Aggressive on October 25, 2024 and sell it today you would earn a total of 53.00 from holding Saat Tax Managed Aggressive or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Aggressive Strategy vs. Saat Tax Managed Aggressive
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Saat Tax Managed |
Saat Aggressive and Saat Tax-managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Saat Tax-managed
The main advantage of trading using opposite Saat Aggressive and Saat Tax-managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive position performs unexpectedly, Saat Tax-managed 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 Tax-managed will offset losses from the drop in Saat Tax-managed'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 |
| Saat Tax-managed vs. Saat E Market | Saat Tax-managed vs. Saat Moderate Strategy | Saat Tax-managed vs. Saat Market Growth | Saat Tax-managed vs. Dreyfus Midcap Index |
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.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |