Correlation Between Saat Aggressive and Siit Sp
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive and Siit Sp 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 Siit Sp 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 Siit Sp 500, you can compare the effects of market volatilities on Saat Aggressive and Siit Sp 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 Siit Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Siit Sp.
Diversification Opportunities for Saat Aggressive and Siit Sp
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and Siit is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy and Siit Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Sp 500 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 Siit Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Sp 500 has no effect on the direction of Saat Aggressive i.e., Saat Aggressive and Siit Sp go up and down completely randomly.
Pair Corralation between Saat Aggressive and Siit Sp
Assuming the 90 days horizon Saat Aggressive is expected to generate 1.96 times less return on investment than Siit Sp. But when comparing it to its historical volatility, Saat Aggressive Strategy is 1.41 times less risky than Siit Sp. It trades about 0.11 of its potential returns per unit of risk. Siit Sp 500 is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,350 in Siit Sp 500 on August 28, 2024 and sell it today you would earn a total of 174.00 from holding Siit Sp 500 or generate 7.4% 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. Siit Sp 500
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Siit Sp 500 |
Saat Aggressive and Siit Sp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Siit Sp
The main advantage of trading using opposite Saat Aggressive and Siit Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive position performs unexpectedly, Siit Sp 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 Siit Sp will offset losses from the drop in Siit Sp'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 |
| Siit Sp vs. Simt Multi Asset Accumulation | Siit Sp vs. Saat Market Growth | Siit Sp vs. Simt Real Return | Siit Sp 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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