Correlation Between Simt Mid and Saat Tax-managed

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

By analyzing existing cross correlation between Simt Mid Cap and Saat Tax Managed Aggressive, you can compare the effects of market volatilities on Simt Mid and Saat Tax-managed 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 Mid with a short position of Saat Tax-managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Mid and Saat Tax-managed.

Diversification Opportunities for Simt Mid and Saat Tax-managed

0.98

Correlation Coefficient

Simt Mid  Saat Tax-managed

Almost no diversification

The 3 months correlation between Simt and Saat is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Simt Mid Cap and Saat Tax Managed Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Tax Managed and Simt Mid 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 Mid Cap are associated (or correlated) with Saat Tax-managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Tax Managed has no effect on the direction of Simt Mid i.e., Simt Mid and Saat Tax-managed go up and down completely randomly.

Pair Corralation between Simt Mid and Saat Tax-managed

Assuming the 90 days horizon Simt Mid is expected to generate 1.13 times less return on investment than Saat Tax-managed. In addition to that, Simt Mid is 1.3 times more volatile than Saat Tax Managed Aggressive. It trades about 0.15 of its total potential returns per unit of risk. Saat Tax Managed Aggressive is currently generating about 0.23 per unit of volatility. If you would invest  2,654  in Saat Tax Managed Aggressive on May 26, 2025 and sell it today you would earn a total of  218.00  from holding Saat Tax Managed Aggressive or generate 8.21% return on investment over 90 days.

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

Simt Mid Cap  vs.  Saat Tax Managed Aggressive

Simt Mid Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Mid Cap are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Simt Mid may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Saat Tax Managed

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Saat Tax Managed Aggressive are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Saat Tax-managed may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Simt Mid and Saat Tax-managed

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

The idea behind Simt Mid Cap and Saat Tax Managed Aggressive 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 Global Correlations module to find global opportunities by holding instruments from different markets.