Correlation Between Saat Defensive and Ab Global
Can any of the company-specific risk be diversified away by investing in both Saat Defensive and Ab Global 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 Defensive and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Defensive Strategy and Ab Global Bond, you can compare the effects of market volatilities on Saat Defensive and Ab Global 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 Defensive with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Defensive and Ab Global.
Diversification Opportunities for Saat Defensive and Ab Global
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saat and ANAZX is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Saat Defensive Strategy and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond and Saat Defensive 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 Defensive Strategy are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Saat Defensive i.e., Saat Defensive and Ab Global go up and down completely randomly.
Pair Corralation between Saat Defensive and Ab Global
Assuming the 90 days horizon Saat Defensive Strategy is expected to generate 0.19 times more return on investment than Ab Global. However, Saat Defensive Strategy is 5.15 times less risky than Ab Global. It trades about 0.47 of its potential returns per unit of risk. Ab Global Bond is currently generating about 0.08 per unit of risk. If you would invest 1,078 in Saat Defensive Strategy on November 28, 2024 and sell it today you would earn a total of 45.00 from holding Saat Defensive Strategy or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Defensive Strategy vs. Ab Global Bond
Performance |
| Timeline |
| Saat Defensive Strategy |
| Ab Global Bond |
Saat Defensive and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Defensive and Ab Global
The main advantage of trading using opposite Saat Defensive and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Defensive position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Saat Defensive vs. Gamco Natural Resources | Saat Defensive vs. Adams Natural Resources | Saat Defensive vs. Pimco Energy Tactical | Saat Defensive vs. Clearbridge Energy Mlp |
| Ab Global vs. Eaton Vance Worldwide | Ab Global vs. John Hancock Variable | Ab Global vs. Lord Abbett Health | Ab Global vs. The Gabelli Healthcare |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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