Correlation Between Simt Tax-managed and Saat Moderate

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

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

Diversification Opportunities for Simt Tax-managed and Saat Moderate

0.95

Correlation Coefficient

Simt Tax-managed  Saat Moderate

Almost no diversification

The 3 months correlation between Simt and Saat is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Simt Tax Managed Smallmid and Saat Moderate Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Moderate Strategy and Simt Tax-managed 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 Tax Managed Smallmid are associated (or correlated) with Saat Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Moderate Strategy has no effect on the direction of Simt Tax-managed i.e., Simt Tax-managed and Saat Moderate go up and down completely randomly.

Pair Corralation between Simt Tax-managed and Saat Moderate

Assuming the 90 days horizon Simt Tax Managed Smallmid is expected to generate 3.98 times more return on investment than Saat Moderate. However, Simt Tax-managed is 3.98 times more volatile than Saat Moderate Strategy. It trades about 0.24 of its potential returns per unit of risk. Saat Moderate Strategy is currently generating about 0.31 per unit of risk. If you would invest  1,978  in Simt Tax Managed Smallmid on April 20, 2025 and sell it today you would earn a total of  337.00  from holding Simt Tax Managed Smallmid or generate 17.04% return on investment over 90 days.

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

Simt Tax Managed Smallmid  vs.  Saat Moderate Strategy

Simt Tax Managed

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Tax Managed Smallmid are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Simt Tax-managed showed solid returns over the last few months and may actually be approaching a breakup point.

Saat Moderate Strategy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Saat Moderate Strategy are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Saat Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Simt Tax-managed and Saat Moderate

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

The idea behind Simt Tax Managed Smallmid and Saat Moderate 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.