Correlation Between Saat Conservative and Saat Aggressive
Can any of the company-specific risk be diversified away by investing in both Saat Conservative 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 Saat Conservative and Saat Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Servative Strategy and Saat Aggressive Strategy, you can compare the effects of market volatilities on Saat Conservative 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 Saat Conservative with a short position of Saat Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Conservative and Saat Aggressive.
Diversification Opportunities for Saat Conservative and Saat Aggressive
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Saat is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Saat Servative Strategy 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 Saat Conservative 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 Servative Strategy 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 Saat Conservative i.e., Saat Conservative and Saat Aggressive go up and down completely randomly.
Pair Corralation between Saat Conservative and Saat Aggressive
Assuming the 90 days horizon Saat Conservative is expected to generate 3.12 times less return on investment than Saat Aggressive. But when comparing it to its historical volatility, Saat Servative Strategy is 2.93 times less risky than Saat Aggressive. It trades about 0.26 of its potential returns per unit of risk. Saat Aggressive Strategy is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,323 in Saat Aggressive Strategy on February 28, 2024 and sell it today you would earn a total of 41.00 from holding Saat Aggressive Strategy or generate 3.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Saat Servative Strategy vs. Saat Aggressive Strategy
Performance |
Timeline |
Saat Servative Strategy |
Saat Aggressive Strategy |
Saat Conservative and Saat Aggressive Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saat Conservative and Saat Aggressive
The main advantage of trading using opposite Saat Conservative and Saat Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Conservative 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.Saat Conservative vs. Fidelity Asset Manager | Saat Conservative vs. American Funds College | Saat Conservative vs. HUMANA INC | Saat Conservative vs. Aquagold International |
Saat Aggressive vs. HUMANA INC | Saat Aggressive vs. Aquagold International | Saat Aggressive vs. Barloworld Ltd ADR | Saat Aggressive vs. High Yield Municipal Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
CEOs Directory Screen CEOs from public companies around the world | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |