Correlation Between Quantex Fund and Saat E

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

By analyzing existing cross correlation between Quantex Fund Institutional and Saat E Market, you can compare the effects of market volatilities on Quantex Fund and Saat E 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 Quantex Fund with a short position of Saat E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantex Fund and Saat E.

Diversification Opportunities for Quantex Fund and Saat E

0.83

Correlation Coefficient

Quantex Fund  Saat E

Very poor diversification

The 3 months correlation between Quantex and Saat is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Quantex Fund Institutional and Saat E Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat E Market and Quantex Fund 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 Quantex Fund Institutional are associated (or correlated) with Saat E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat E Market has no effect on the direction of Quantex Fund i.e., Quantex Fund and Saat E go up and down completely randomly.

Pair Corralation between Quantex Fund and Saat E

Assuming the 90 days horizon Quantex Fund Institutional is expected to under-perform the Saat E. In addition to that, Quantex Fund is 1.39 times more volatile than Saat E Market. It trades about -0.09 of its total potential returns per unit of risk. Saat E Market is currently generating about -0.07 per unit of volatility. If you would invest  2,170  in Saat E Market on October 24, 2024 and sell it today you would lose (156.00) from holding Saat E Market or give up 7.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.33%
Values	Daily Returns

Quantex Fund Institutional  vs.  Saat E Market

Quantex Fund Institu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quantex Fund Institutional has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Saat E Market

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saat E Market has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Quantex Fund and Saat E

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

The idea behind Quantex Fund Institutional and Saat E Market 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.