Correlation Between Simt Multi and Saat E

Can any of the company-specific risk be diversified away by investing in both Simt Multi and Saat E 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 Simt Multi and Saat E into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Simt Multi Asset Accumulation and Saat E Market, you can compare the effects of market volatilities on Simt Multi and Saat E 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 Simt Multi with a short position of Saat E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Saat E.

Diversification Opportunities for Simt Multi and Saat E

0.6

Correlation Coefficient

Simt Multi  Saat E

Poor diversification

The 3 months correlation between Simt and Saat is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Saat E Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat E Market and Simt Multi 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 Simt Multi Asset Accumulation are associated (or correlated) with Saat E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat E Market has no effect on the direction of Simt Multi i.e., Simt Multi and Saat E go up and down completely randomly.

Pair Corralation between Simt Multi and Saat E

Assuming the 90 days horizon Simt Multi is expected to generate 1.52 times less return on investment than Saat E. In addition to that, Simt Multi is 1.29 times more volatile than Saat E Market. It trades about 0.05 of its total potential returns per unit of risk. Saat E Market is currently generating about 0.1 per unit of volatility. If you would invest  1,043  in Saat E Market on September 18, 2024 and sell it today you would earn a total of  232.00  from holding Saat E Market or generate 22.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.8%
Values	Daily Returns

Simt Multi Asset Accumulation  vs.  Saat E Market

Simt Multi Asset

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Simt Multi Asset Accumulation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Simt Multi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Saat E Market

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Saat E Market are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Saat E is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Simt Multi and Saat E

The main advantage of trading using opposite Simt Multi and Saat E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi position performs unexpectedly, Saat E 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 E will offset losses from the drop in Saat E's long position.

The idea behind Simt Multi Asset Accumulation and Saat E Market pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.