Correlation Between Saat Moderate and Blackrock All

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

By analyzing existing cross correlation between Saat Moderate Strategy and Blackrock All Cap Energy, you can compare the effects of market volatilities on Saat Moderate and Blackrock All 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 Moderate with a short position of Blackrock All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Blackrock All.

Diversification Opportunities for Saat Moderate and Blackrock All

0.84

Correlation Coefficient

Saat Moderate  Blackrock All

Very poor diversification

The 3 months correlation between Saat and Blackrock is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Blackrock All Cap Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock All Cap and Saat Moderate 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 Moderate Strategy are associated (or correlated) with Blackrock All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock All Cap has no effect on the direction of Saat Moderate i.e., Saat Moderate and Blackrock All go up and down completely randomly.

Pair Corralation between Saat Moderate and Blackrock All

Assuming the 90 days horizon Saat Moderate is expected to generate 2.82 times less return on investment than Blackrock All. But when comparing it to its historical volatility, Saat Moderate Strategy is 3.75 times less risky than Blackrock All. It trades about 0.17 of its potential returns per unit of risk. Blackrock All Cap Energy is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,191  in Blackrock All Cap Energy on May 6, 2025 and sell it today you would earn a total of  88.00  from holding Blackrock All Cap Energy or generate 7.39% return on investment over 90 days.

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

Saat Moderate Strategy  vs.  Blackrock All Cap Energy

Saat Moderate Strategy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Saat Moderate Strategy are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Saat Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Blackrock All Cap

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock All Cap Energy are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Blackrock All may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Saat Moderate and Blackrock All

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

The idea behind Saat Moderate Strategy and Blackrock All Cap Energy 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.