Correlation Between Simt Multi and Saat Defensive

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

By analyzing existing cross correlation between Simt Multi Asset Capital and Saat Defensive Strategy, you can compare the effects of market volatilities on Simt Multi and Saat Defensive 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 Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Saat Defensive.

Diversification Opportunities for Simt Multi and Saat Defensive

0.99

Correlation Coefficient

Simt Multi  Saat Defensive

No risk reduction

The 3 months correlation between Simt and Saat is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Capital and Saat Defensive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Defensive Strategy 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 Capital are associated (or correlated) with Saat Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Defensive Strategy has no effect on the direction of Simt Multi i.e., Simt Multi and Saat Defensive go up and down completely randomly.

Pair Corralation between Simt Multi and Saat Defensive

Assuming the 90 days horizon Simt Multi Asset Capital is expected to generate 1.12 times more return on investment than Saat Defensive. However, Simt Multi is 1.12 times more volatile than Saat Defensive Strategy. It trades about 0.29 of its potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.22 per unit of risk. If you would invest  985.00  in Simt Multi Asset Capital on May 2, 2025 and sell it today you would earn a total of  20.00  from holding Simt Multi Asset Capital or generate 2.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Simt Multi Asset Capital  vs.  Saat Defensive Strategy

Simt Multi Asset

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Capital are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. 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 Defensive Strategy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Saat Defensive Strategy are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Saat Defensive 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 Defensive

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

The idea behind Simt Multi Asset Capital and Saat Defensive Strategy 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.

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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.