Correlation Between Siit World and Saat Aggressive
Can any of the company-specific risk be diversified away by investing in both Siit World and Saat Aggressive 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 Siit World and Saat Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit World Select and Saat Aggressive Strategy, you can compare the effects of market volatilities on Siit World and Saat Aggressive 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 Siit World with a short position of Saat Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit World and Saat Aggressive.
Diversification Opportunities for Siit World and Saat Aggressive
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Saat is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Siit World Select and Saat Aggressive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Aggressive Strategy and Siit World 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 Siit World Select are associated (or correlated) with Saat Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Aggressive Strategy has no effect on the direction of Siit World i.e., Siit World and Saat Aggressive go up and down completely randomly.
Pair Corralation between Siit World and Saat Aggressive
Assuming the 90 days horizon Siit World is expected to generate 1.2 times less return on investment than Saat Aggressive. In addition to that, Siit World is 1.27 times more volatile than Saat Aggressive Strategy. It trades about 0.12 of its total potential returns per unit of risk. Saat Aggressive Strategy is currently generating about 0.18 per unit of volatility. If you would invest 1,453 in Saat Aggressive Strategy on September 14, 2024 and sell it today you would earn a total of 19.00 from holding Saat Aggressive Strategy or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit World Select vs. Saat Aggressive Strategy
Performance |
| Timeline |
| Siit World Select |
| Saat Aggressive Strategy |
Siit World and Saat Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit World and Saat Aggressive
The main advantage of trading using opposite Siit World and Saat Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit World position performs unexpectedly, Saat Aggressive 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 Saat Aggressive will offset losses from the drop in Saat Aggressive's long position.| Siit World vs. Simt Multi Asset Accumulation | Siit World vs. Saat Market Growth | Siit World vs. Simt Real Return | Siit World vs. Simt Small Cap |
| Saat Aggressive vs. Simt Mid Cap | Saat Aggressive vs. Saat Tax Managed Aggressive | Saat Aggressive vs. Sit Emerging Markets | Saat Aggressive vs. Simt High Yield |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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