Correlation Between Saat Servative and Simt Multi

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

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

Diversification Opportunities for Saat Servative and Simt Multi

0.96

Correlation Coefficient

Saat Servative  Simt Multi

Almost no diversification

The 3 months correlation between Saat and Simt is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Saat Servative Strategy and Simt Multi Asset Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Saat Servative 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 Servative Strategy are associated (or correlated) with Simt Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Saat Servative i.e., Saat Servative and Simt Multi go up and down completely randomly.

Pair Corralation between Saat Servative and Simt Multi

Assuming the 90 days horizon Saat Servative Strategy is expected to generate about the same return on investment as Simt Multi Asset Capital. However, Saat Servative is 1.63 times more volatile than Simt Multi Asset Capital. It trades about 0.17 of its potential returns per unit of risk. Simt Multi Asset Capital is currently producing about 0.27 per unit of risk. If you would invest  985.00  in Simt Multi Asset Capital on May 4, 2025 and sell it today you would earn a total of  19.00  from holding Simt Multi Asset Capital or generate 1.93% return on investment over 90 days.

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

Saat Servative Strategy  vs.  Simt Multi Asset Capital

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 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Saat Servative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt Multi Asset

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Capital are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Multi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Saat Servative and Simt Multi

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

The idea behind Saat Servative Strategy and Simt Multi Asset Capital 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.