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
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAAT and Sit is 0.48. 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 Servative Strategy is expected to generate 0.24 times more return on investment than Sit Emerging. However, Saat Servative Strategy is 4.13 times less risky than Sit Emerging. It trades about 0.14 of its potential returns per unit of risk. Sit Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 949.00 in Saat Servative Strategy on August 31, 2024 and sell it today you would earn a total of 108.00 from holding Saat Servative Strategy or generate 11.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| 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. Huber Capital Diversified | Saat Conservative vs. Calvert Conservative Allocation | Saat Conservative vs. Pimco Diversified Income | Saat Conservative vs. Fidelity Advisor Diversified |
| Sit Emerging vs. Pear Tree Polaris | Sit Emerging vs. Artisan High Income | Sit Emerging vs. HUMANA INC | Sit Emerging vs. Aquagold International |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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