Correlation Between Simt Multi-asset and Saat Market

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

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

Diversification Opportunities for Simt Multi-asset and Saat Market

0.43

Correlation Coefficient

Simt Multi-asset  Saat Market

Very weak diversification

The 3 months correlation between Simt and Saat is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth and Simt Multi-asset 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 Multi Asset Accumulation are associated (or correlated) with Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Saat Market go up and down completely randomly.

Pair Corralation between Simt Multi-asset and Saat Market

Assuming the 90 days horizon Simt Multi-asset is expected to generate 1.08 times less return on investment than Saat Market. In addition to that, Simt Multi-asset is 1.18 times more volatile than Saat Market Growth. It trades about 0.27 of its total potential returns per unit of risk. Saat Market Growth is currently generating about 0.35 per unit of volatility. If you would invest  1,270  in Saat Market Growth on September 3, 2024 and sell it today you would earn a total of  34.00  from holding Saat Market Growth or generate 2.68% return on investment over 90 days.

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

Simt Multi Asset Accumulation  vs.  Saat Market Growth

Simt Multi Asset

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Accumulation are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Multi-asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Saat Market Growth

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Saat Market Growth are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Saat Market 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 Multi-asset and Saat Market

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

The idea behind Simt Multi Asset Accumulation and Saat Market Growth 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.