Correlation Between Siit Small and Saat Servative

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

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

Diversification Opportunities for Siit Small and Saat Servative

0.86

Correlation Coefficient

Siit Small  Saat Servative

Very poor diversification

The 3 months correlation between Siit and Saat is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Saat Servative Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Servative Strategy and Siit Small 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 Siit Small Mid are associated (or correlated) with Saat Servative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Servative Strategy has no effect on the direction of Siit Small i.e., Siit Small and Saat Servative go up and down completely randomly.

Pair Corralation between Siit Small and Saat Servative

Assuming the 90 days horizon Siit Small Mid is expected to generate 5.38 times more return on investment than Saat Servative. However, Siit Small is 5.38 times more volatile than Saat Servative Strategy. It trades about 0.08 of its potential returns per unit of risk. Saat Servative Strategy is currently generating about 0.16 per unit of risk. If you would invest  938.00  in Siit Small Mid on May 5, 2025 and sell it today you would earn a total of  44.00  from holding Siit Small Mid or generate 4.69% return on investment over 90 days.

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

Siit Small Mid  vs.  Saat Servative Strategy

Siit Small Mid

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Small Mid are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Saat Servative Strategy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Saat Servative Strategy are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Saat Servative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Siit Small and Saat Servative

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

The idea behind Siit Small Mid and Saat Servative Strategy 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.