Correlation Between Saat Defensive and Siit Us
Can any of the company-specific risk be diversified away by investing in both Saat Defensive and Siit Us 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 Siit Us 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 Siit Equity Factor, you can compare the effects of market volatilities on Saat Defensive and Siit Us 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 Siit Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Defensive and Siit Us.
Diversification Opportunities for Saat Defensive and Siit Us
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Siit is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Saat Defensive Strategy and Siit Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Equity Factor 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 Siit Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Equity Factor has no effect on the direction of Saat Defensive i.e., Saat Defensive and Siit Us go up and down completely randomly.
Pair Corralation between Saat Defensive and Siit Us
Assuming the 90 days horizon Saat Defensive is expected to generate 3.34 times less return on investment than Siit Us. But when comparing it to its historical volatility, Saat Defensive Strategy is 15.47 times less risky than Siit Us. It trades about 0.36 of its potential returns per unit of risk. Siit Equity Factor is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,152 in Siit Equity Factor on September 1, 2024 and sell it today you would earn a total of 459.00 from holding Siit Equity Factor or generate 39.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Saat Defensive Strategy vs. Siit Equity Factor
Performance |
| Timeline |
| Saat Defensive Strategy |
| Siit Equity Factor |
Saat Defensive and Siit Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Defensive and Siit Us
The main advantage of trading using opposite Saat Defensive and Siit Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Defensive position performs unexpectedly, Siit Us 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 Us will offset losses from the drop in Siit Us' long position.| Saat Defensive vs. Fidelity Small Cap | Saat Defensive vs. Royce Opportunity Fund | Saat Defensive vs. Vanguard Small Cap Value | Saat Defensive vs. Heartland Value Plus |
| Siit Us vs. Siit Dynamic Asset | Siit Us vs. Columbia Large Cap | Siit Us vs. Janus Growth And | Siit Us vs. Nationwide Sp 500 |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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