Correlation Between Saat Core and Saat Market

Can any of the company-specific risk be diversified away by investing in both Saat Core and Saat Market 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 Saat Market 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 Saat Market Growth, you can compare the effects of market volatilities on Saat Core and Saat Market 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 Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Core and Saat Market.

Diversification Opportunities for Saat Core and Saat Market

1.0

Correlation Coefficient

Saat Core  Saat Market

No risk reduction

The 3 months correlation between Saat and Saat is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Saat E Market and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth 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 Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Saat Core i.e., Saat Core and Saat Market go up and down completely randomly.

Pair Corralation between Saat Core and Saat Market

Assuming the 90 days horizon Saat E Market is expected to generate 1.01 times more return on investment than Saat Market. However, Saat Core is 1.01 times more volatile than Saat Market Growth. It trades about 0.19 of its potential returns per unit of risk. Saat Market Growth is currently generating about 0.19 per unit of risk. If you would invest  1,950  in Saat E Market on May 7, 2025 and sell it today you would earn a total of  145.00  from holding Saat E Market or generate 7.44% return on investment over 90 days.

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

Saat E Market  vs.  Saat Market Growth

Saat E Market

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Saat E Market are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Saat Core may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Saat Market Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Saat Market Growth are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Saat Market may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Saat Core and Saat Market

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

The idea behind Saat E Market and Saat Market Growth 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.