Correlation Between Saat Core and Simt Core
Can any of the company-specific risk be diversified away by investing in both Saat Core and Simt Core 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 Core and Simt Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat E Market and Simt E Fixed, you can compare the effects of market volatilities on Saat Core and Simt Core 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 Core with a short position of Simt Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Core and Simt Core.
Diversification Opportunities for Saat Core and Simt Core
Poor diversification
The 3 months correlation between Saat and Simt is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Saat E Market and Simt E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt E Fixed and Saat Core 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 E Market are associated (or correlated) with Simt Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt E Fixed has no effect on the direction of Saat Core i.e., Saat Core and Simt Core go up and down completely randomly.
Pair Corralation between Saat Core and Simt Core
Assuming the 90 days horizon Saat E Market is expected to generate 0.99 times more return on investment than Simt Core. However, Saat E Market is 1.01 times less risky than Simt Core. It trades about 0.34 of its potential returns per unit of risk. Simt E Fixed is currently generating about 0.07 per unit of risk. If you would invest 1,241 in Saat E Market on April 24, 2025 and sell it today you would earn a total of 86.00 from holding Saat E Market or generate 6.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Saat E Market vs. Simt E Fixed
Performance |
Timeline |
Saat E Market |
Simt E Fixed |
Saat Core and Simt Core Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saat Core and Simt Core
The main advantage of trading using opposite Saat Core and Simt Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Core position performs unexpectedly, Simt Core 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 Core will offset losses from the drop in Simt Core's long position.Saat Core vs. Icon Information Technology | Saat Core vs. Technology Ultrasector Profund | Saat Core vs. Janus Global Technology | Saat Core vs. Goldman Sachs Technology |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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