Correlation Between Saratoga Investment and State Street
Can any of the company-specific risk be diversified away by investing in both Saratoga Investment and State Street 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 Saratoga Investment and State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saratoga Investment Corp and State Street Corp, you can compare the effects of market volatilities on Saratoga Investment and State Street 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 Saratoga Investment with a short position of State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investment and State Street.
Diversification Opportunities for Saratoga Investment and State Street
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saratoga and State is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investment Corp and State Street Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Corp and Saratoga Investment 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 Saratoga Investment Corp are associated (or correlated) with State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Corp has no effect on the direction of Saratoga Investment i.e., Saratoga Investment and State Street go up and down completely randomly.
Pair Corralation between Saratoga Investment and State Street
Considering the 90-day investment horizon Saratoga Investment Corp is expected to generate 0.58 times more return on investment than State Street. However, Saratoga Investment Corp is 1.72 times less risky than State Street. It trades about 0.12 of its potential returns per unit of risk. State Street Corp is currently generating about -0.03 per unit of risk. If you would invest 2,286 in Saratoga Investment Corp on January 25, 2024 and sell it today you would earn a total of 45.00 from holding Saratoga Investment Corp or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saratoga Investment Corp vs. State Street Corp
Performance |
| Timeline |
| Saratoga Investment Corp |
| State Street Corp |
Saratoga Investment and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investment and State Street
The main advantage of trading using opposite Saratoga Investment and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investment position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Saratoga Investment vs. New Mountain Finance | Saratoga Investment vs. BlackRock TCP Capital | Saratoga Investment vs. Carlyle Secured Lending | Saratoga Investment vs. Sixth Street Specialty |
| State Street vs. Invesco Plc | State Street vs. Franklin Resources | State Street vs. T Rowe Price | State Street vs. SEI Investments |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |