Correlation Between Acap Strategic and Sa Emerging

Can any of the company-specific risk be diversified away by investing in both Acap Strategic and Sa Emerging 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 Acap Strategic and Sa Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acap Strategic and Sa Emerging Markets, you can compare the effects of market volatilities on Acap Strategic and Sa Emerging 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 Acap Strategic with a short position of Sa Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acap Strategic and Sa Emerging.

Diversification Opportunities for Acap Strategic and Sa Emerging

0.71

Correlation Coefficient

Acap Strategic  Sa Emerging

Poor diversification

The 3 months correlation between Acap and SAEMX is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Acap Strategic and Sa Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Emerging Markets and Acap Strategic 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 Acap Strategic are associated (or correlated) with Sa Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Emerging Markets has no effect on the direction of Acap Strategic i.e., Acap Strategic and Sa Emerging go up and down completely randomly.

Pair Corralation between Acap Strategic and Sa Emerging

Assuming the 90 days horizon Acap Strategic is expected to generate 1.1 times less return on investment than Sa Emerging. In addition to that, Acap Strategic is 1.28 times more volatile than Sa Emerging Markets. It trades about 0.33 of its total potential returns per unit of risk. Sa Emerging Markets is currently generating about 0.47 per unit of volatility. If you would invest  1,018  in Sa Emerging Markets on March 2, 2025 and sell it today you would earn a total of  70.00  from holding Sa Emerging Markets or generate 6.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Acap Strategic  vs.  Sa Emerging Markets

Acap Strategic

Risk-Adjusted Performance

OK

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

Sa Emerging Markets

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sa Emerging Markets are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Sa Emerging may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Acap Strategic and Sa Emerging

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

The idea behind Acap Strategic and Sa Emerging Markets 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.