Correlation Between Saat Market and Siit Screened

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

By analyzing existing cross correlation between Saat Market Growth and Siit Screened World, you can compare the effects of market volatilities on Saat Market and Siit Screened 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 Market with a short position of Siit Screened. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Siit Screened.

Diversification Opportunities for Saat Market and Siit Screened

0.64

Correlation Coefficient

Saat Market  Siit Screened

Poor diversification

The 3 months correlation between Saat and Siit is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Siit Screened World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Screened World and Saat Market 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 Market Growth are associated (or correlated) with Siit Screened. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Screened World has no effect on the direction of Saat Market i.e., Saat Market and Siit Screened go up and down completely randomly.

Pair Corralation between Saat Market and Siit Screened

Assuming the 90 days horizon Saat Market is expected to generate 1.5 times less return on investment than Siit Screened. In addition to that, Saat Market is 1.06 times more volatile than Siit Screened World. It trades about 0.04 of its total potential returns per unit of risk. Siit Screened World is currently generating about 0.06 per unit of volatility. If you would invest  968.00  in Siit Screened World on February 9, 2025 and sell it today you would earn a total of  238.00  from holding Siit Screened World or generate 24.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.8%
Values	Daily Returns

Saat Market Growth  vs.  Siit Screened World

Saat Market Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Saat Market Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Saat Market is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Siit Screened World

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Screened World are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit Screened is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Saat Market and Siit Screened

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

The idea behind Saat Market Growth and Siit Screened World 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.

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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.