Correlation Between Saat Defensive and Siit Ultra
Can any of the company-specific risk be diversified away by investing in both Saat Defensive and Siit Ultra 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 Ultra 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 Ultra Short, you can compare the effects of market volatilities on Saat Defensive and Siit Ultra 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 Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Defensive and Siit Ultra.
Diversification Opportunities for Saat Defensive and Siit Ultra
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Siit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Saat Defensive Strategy and Siit Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Ultra Short 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 Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Ultra Short has no effect on the direction of Saat Defensive i.e., Saat Defensive and Siit Ultra go up and down completely randomly.
Pair Corralation between Saat Defensive and Siit Ultra
Assuming the 90 days horizon Saat Defensive Strategy is expected to generate 0.53 times more return on investment than Siit Ultra. However, Saat Defensive Strategy is 1.89 times less risky than Siit Ultra. It trades about 0.43 of its potential returns per unit of risk. Siit Ultra Short is currently generating about 0.21 per unit of risk. If you would invest 1,059 in Saat Defensive Strategy on August 27, 2024 and sell it today you would earn a total of 63.00 from holding Saat Defensive Strategy or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Defensive Strategy vs. Siit Ultra Short
Performance |
| Timeline |
| Saat Defensive Strategy |
| Siit Ultra Short |
Saat Defensive and Siit Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Defensive and Siit Ultra
The main advantage of trading using opposite Saat Defensive and Siit Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Defensive position performs unexpectedly, Siit Ultra 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 Ultra will offset losses from the drop in Siit Ultra's long position.| Saat Defensive vs. Pender Real Estate | Saat Defensive vs. Franklin Real Estate | Saat Defensive vs. Prudential Real Estate | Saat Defensive vs. Simt Real Estate |
| Siit Ultra vs. Omni Small Cap Value | Siit Ultra vs. Qs Growth Fund | Siit Ultra vs. Rational Special Situations | Siit Ultra vs. Archer Balanced Fund |
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 CEOs Directory module to screen CEOs from public companies around the world.
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