Correlation Between Saat Conservative and Sit Emerging
Can any of the company-specific risk be diversified away by investing in both Saat Conservative and Sit Emerging 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 Conservative and Sit Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Servative Strategy and Sit Emerging Markets, you can compare the effects of market volatilities on Saat Conservative and Sit Emerging 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 Conservative with a short position of Sit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Conservative and Sit Emerging.
Diversification Opportunities for Saat Conservative and Sit Emerging
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAAT and Sit is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Saat Servative Strategy and Sit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Emerging Markets and Saat Conservative 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 Servative Strategy are associated (or correlated) with Sit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Emerging Markets has no effect on the direction of Saat Conservative i.e., Saat Conservative and Sit Emerging go up and down completely randomly.
Pair Corralation between Saat Conservative and Sit Emerging
Assuming the 90 days horizon Saat Conservative is expected to generate 1.48 times less return on investment than Sit Emerging. But when comparing it to its historical volatility, Saat Servative Strategy is 3.84 times less risky than Sit Emerging. It trades about 0.1 of its potential returns per unit of risk. Sit Emerging Markets is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 985.00 in Sit Emerging Markets on September 3, 2024 and sell it today you would earn a total of 144.00 from holding Sit Emerging Markets or generate 14.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Servative Strategy vs. Sit Emerging Markets
Performance |
| Timeline |
| Saat Servative Strategy |
| Sit Emerging Markets |
Saat Conservative and Sit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Conservative and Sit Emerging
The main advantage of trading using opposite Saat Conservative and Sit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Conservative position performs unexpectedly, Sit Emerging 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 Sit Emerging will offset losses from the drop in Sit Emerging's long position.| Saat Conservative vs. Auer Growth Fund | Saat Conservative vs. Rbb Fund | Saat Conservative vs. Balanced Fund Investor | Saat Conservative vs. Growth Strategy Fund |
| Sit Emerging vs. Sit Emerging Markets | Sit Emerging vs. Sit Small Cap | Sit Emerging vs. Sit Global Dividend | Sit Emerging vs. Sit Global Dividend |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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