Correlation Between Siit Small and Saat Moderate
Can any of the company-specific risk be diversified away by investing in both Siit Small and Saat Moderate 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 Siit Small and Saat Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Small Mid and Saat Moderate Strategy, you can compare the effects of market volatilities on Siit Small and Saat Moderate 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 Siit Small with a short position of Saat Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Saat Moderate.
Diversification Opportunities for Siit Small and Saat Moderate
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Saat is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Saat Moderate Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Moderate Strategy and Siit Small 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 Siit Small Mid are associated (or correlated) with Saat Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Moderate Strategy has no effect on the direction of Siit Small i.e., Siit Small and Saat Moderate go up and down completely randomly.
Pair Corralation between Siit Small and Saat Moderate
Assuming the 90 days horizon Siit Small Mid is expected to under-perform the Saat Moderate. In addition to that, Siit Small is 2.39 times more volatile than Saat Moderate Strategy. It trades about -0.3 of its total potential returns per unit of risk. Saat Moderate Strategy is currently generating about 0.11 per unit of volatility. If you would invest 1,721 in Saat Moderate Strategy on December 1, 2024 and sell it today you would earn a total of 14.00 from holding Saat Moderate Strategy or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Mid vs. Saat Moderate Strategy
Performance |
| Timeline |
| Siit Small Mid |
| Saat Moderate Strategy |
Siit Small and Saat Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Saat Moderate
The main advantage of trading using opposite Siit Small and Saat Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Saat Moderate 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 Moderate will offset losses from the drop in Saat Moderate's long position.| Siit Small vs. Salient Mlp Energy | Siit Small vs. Oil Gas Ultrasector | Siit Small vs. Franklin Natural Resources | Siit Small vs. Short Oil Gas |
| Saat Moderate vs. Simt Managed Volatility | Saat Moderate vs. Simt Managed Volatility | Saat Moderate vs. Hennessy Focus Fund | Saat Moderate vs. The Disciplined Growth |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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