Correlation Between Saat Aggressive and Saat Core
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive 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 Saat Aggressive and Saat Core 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 E Market, you can compare the effects of market volatilities on Saat Aggressive 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 Saat Aggressive with a short position of Saat Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Saat Core.
Diversification Opportunities for Saat Aggressive and Saat Core
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Saat is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy 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 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 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 Saat Aggressive i.e., Saat Aggressive and Saat Core go up and down completely randomly.
Pair Corralation between Saat Aggressive and Saat Core
Assuming the 90 days horizon Saat Aggressive Strategy is expected to generate 0.89 times more return on investment than Saat Core. However, Saat Aggressive Strategy is 1.13 times less risky than Saat Core. It trades about 0.09 of its potential returns per unit of risk. Saat E Market is currently generating about 0.08 per unit of risk. If you would invest 1,255 in Saat Aggressive Strategy on August 28, 2024 and sell it today you would earn a total of 252.00 from holding Saat Aggressive Strategy or generate 20.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Aggressive Strategy vs. Saat E Market
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Saat E Market |
Saat Aggressive and Saat Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Saat Core
The main advantage of trading using opposite Saat Aggressive and Saat Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive 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.| 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 Core vs. Saat Tax Managed Aggressive | Saat Core vs. Saat Moderate Strategy | Saat Core vs. Simt Tax Managed Managed | Saat Core vs. Hartford Schroders Smallmid |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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