Correlation Between Saat Aggressive and Simt Real
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive and Simt Real 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 Simt Real 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 Simt Real Return, you can compare the effects of market volatilities on Saat Aggressive and Simt Real 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 Simt Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Simt Real.
Diversification Opportunities for Saat Aggressive and Simt Real
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saat and Simt is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy and Simt Real Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Real Return 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 Simt Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Real Return has no effect on the direction of Saat Aggressive i.e., Saat Aggressive and Simt Real go up and down completely randomly.
Pair Corralation between Saat Aggressive and Simt Real
Assuming the 90 days horizon Saat Aggressive Strategy is expected to generate 4.38 times more return on investment than Simt Real. However, Saat Aggressive is 4.38 times more volatile than Simt Real Return. It trades about 0.03 of its potential returns per unit of risk. Simt Real Return is currently generating about 0.08 per unit of risk. If you would invest 1,358 in Saat Aggressive Strategy on August 26, 2024 and sell it today you would earn a total of 141.00 from holding Saat Aggressive Strategy or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Aggressive Strategy vs. Simt Real Return
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Simt Real Return |
Saat Aggressive and Simt Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Simt Real
The main advantage of trading using opposite Saat Aggressive and Simt Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive position performs unexpectedly, Simt Real 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 Simt Real will offset losses from the drop in Simt Real's long position.| Saat Aggressive vs. Saat Market Growth | Saat Aggressive vs. Saat Moderate Strategy | Saat Aggressive vs. Saat Servative Strategy | Saat Aggressive vs. Sit Emerging Markets |
| Simt Real vs. Simt Multi Asset Accumulation | Simt Real vs. Saat Market Growth | Simt Real vs. Simt Small Cap | Simt Real vs. Siit Screened World |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |