Correlation Between Saat Aggressive and Simt High
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive and Simt High 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 Aggressive and Simt High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Aggressive Strategy and Simt High Yield, you can compare the effects of market volatilities on Saat Aggressive and Simt High 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 Aggressive with a short position of Simt High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Simt High.
Diversification Opportunities for Saat Aggressive and Simt High
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saat and Simt is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy and Simt High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt High Yield and Saat Aggressive 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 Aggressive Strategy are associated (or correlated) with Simt High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt High Yield has no effect on the direction of Saat Aggressive i.e., Saat Aggressive and Simt High go up and down completely randomly.
Pair Corralation between Saat Aggressive and Simt High
Assuming the 90 days horizon Saat Aggressive Strategy is expected to generate 3.1 times more return on investment than Simt High. However, Saat Aggressive is 3.1 times more volatile than Simt High Yield. It trades about 0.07 of its potential returns per unit of risk. Simt High Yield is currently generating about 0.16 per unit of risk. If you would invest 1,369 in Saat Aggressive Strategy on September 26, 2024 and sell it today you would earn a total of 74.00 from holding Saat Aggressive Strategy or generate 5.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Saat Aggressive Strategy vs. Simt High Yield
Performance |
Timeline |
Saat Aggressive Strategy |
Simt High Yield |
Saat Aggressive and Simt High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saat Aggressive and Simt High
The main advantage of trading using opposite Saat Aggressive and Simt High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive position performs unexpectedly, Simt High 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 Simt High will offset losses from the drop in Simt High's long position.Saat Aggressive vs. Saat Market Growth | Saat Aggressive vs. Saat Moderate Strategy | Saat Aggressive vs. Saat Servative Strategy | Saat Aggressive vs. Simt Large Cap |
Simt High vs. Artisan High Income | Simt High vs. Sit Emerging Markets | Simt High vs. Sit International Equity | Simt High vs. Stet Intermediate Term |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |