Correlation Between Balanced Fund and Saat Aggressive
Can any of the company-specific risk be diversified away by investing in both Balanced Fund 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 Balanced Fund and Saat Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Investor and Saat Aggressive Strategy, you can compare the effects of market volatilities on Balanced Fund 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 Balanced Fund with a short position of Saat Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Saat Aggressive.
Diversification Opportunities for Balanced Fund and Saat Aggressive
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Balanced and Saat is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Investor 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 Balanced Fund 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 Balanced Fund Investor 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 Balanced Fund i.e., Balanced Fund and Saat Aggressive go up and down completely randomly.
Pair Corralation between Balanced Fund and Saat Aggressive
Assuming the 90 days horizon Balanced Fund Investor is expected to generate 0.97 times more return on investment than Saat Aggressive. However, Balanced Fund Investor is 1.03 times less risky than Saat Aggressive. It trades about 0.39 of its potential returns per unit of risk. Saat Aggressive Strategy is currently generating about 0.36 per unit of risk. If you would invest 1,956 in Balanced Fund Investor on September 4, 2024 and sell it today you would earn a total of 72.00 from holding Balanced Fund Investor or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Investor vs. Saat Aggressive Strategy
Performance |
| Timeline |
| Balanced Fund Investor |
| Saat Aggressive Strategy |
Balanced Fund and Saat Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Saat Aggressive
The main advantage of trading using opposite Balanced Fund and Saat Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund 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.| Balanced Fund vs. Select Fund Investor | Balanced Fund vs. Heritage Fund Investor | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. Growth Fund Investor |
| Saat Aggressive vs. Ms Global Fixed | Saat Aggressive vs. Us Vector Equity | Saat Aggressive vs. Small Cap Equity | Saat Aggressive vs. Balanced Fund Retail |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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