Correlation Between Saat Moderate and Finisterre Unconstrained

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

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

Diversification Opportunities for Saat Moderate and Finisterre Unconstrained

0.0

Correlation Coefficient

Saat Moderate  Finisterre Unconstrained

Pay attention - limited upside

The 3 months correlation between Saat and Finisterre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Finisterre Unconstrained Emerg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finisterre Unconstrained and Saat Moderate 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 Moderate Strategy are associated (or correlated) with Finisterre Unconstrained. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finisterre Unconstrained has no effect on the direction of Saat Moderate i.e., Saat Moderate and Finisterre Unconstrained go up and down completely randomly.

Pair Corralation between Saat Moderate and Finisterre Unconstrained

If you would invest (100.00) in Finisterre Unconstrained Emerging on September 16, 2024 and sell it today you would earn a total of  100.00  from holding Finisterre Unconstrained Emerging or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Saat Moderate Strategy  vs.  Finisterre Unconstrained Emerg

Saat Moderate Strategy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saat Moderate Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Saat Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Finisterre Unconstrained

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Finisterre Unconstrained Emerging has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Finisterre Unconstrained 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 Moderate and Finisterre Unconstrained

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

The idea behind Saat Moderate Strategy and Finisterre Unconstrained Emerging 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.