Correlation Between Saat Conservative and Global Gold
Can any of the company-specific risk be diversified away by investing in both Saat Conservative and Global Gold 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 Conservative and Global Gold 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 Global Gold Fund, you can compare the effects of market volatilities on Saat Conservative and Global Gold 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 Conservative with a short position of Global Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Conservative and Global Gold.
Diversification Opportunities for Saat Conservative and Global Gold
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and Global is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Saat Servative Strategy and Global Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gold Fund and Saat Conservative 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 Global Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gold Fund has no effect on the direction of Saat Conservative i.e., Saat Conservative and Global Gold go up and down completely randomly.
Pair Corralation between Saat Conservative and Global Gold
Assuming the 90 days horizon Saat Conservative is expected to generate 12.55 times less return on investment than Global Gold. But when comparing it to its historical volatility, Saat Servative Strategy is 8.61 times less risky than Global Gold. It trades about 0.21 of its potential returns per unit of risk. Global Gold Fund is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,163 in Global Gold Fund on December 28, 2024 and sell it today you would earn a total of 390.00 from holding Global Gold Fund or generate 33.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Saat Servative Strategy vs. Global Gold Fund
Performance |
Timeline |
Saat Servative Strategy |
Global Gold Fund |
Saat Conservative and Global Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saat Conservative and Global Gold
The main advantage of trading using opposite Saat Conservative and Global Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Conservative position performs unexpectedly, Global Gold 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 Global Gold will offset losses from the drop in Global Gold's long position.Saat Conservative vs. Cohen Steers Real | Saat Conservative vs. Real Estate Ultrasector | Saat Conservative vs. Forum Real Estate | Saat Conservative vs. Invesco Real Estate |
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Check out your portfolio center.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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