Correlation Between Ab Select and Saat Core
Can any of the company-specific risk be diversified away by investing in both Ab Select and Saat Core 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 Ab Select and Saat Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Equity and Saat E Market, you can compare the effects of market volatilities on Ab Select and Saat Core 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 Ab Select with a short position of Saat Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Saat Core.
Diversification Opportunities for Ab Select and Saat Core
No risk reduction
The 3 months correlation between AUUIX and Saat is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity 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 Ab Select 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 Ab Select Equity are associated (or correlated) with Saat Core. 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 Ab Select i.e., Ab Select and Saat Core go up and down completely randomly.
Pair Corralation between Ab Select and Saat Core
Assuming the 90 days horizon Ab Select Equity is expected to generate 2.08 times more return on investment than Saat Core. However, Ab Select is 2.08 times more volatile than Saat E Market. It trades about 0.36 of its potential returns per unit of risk. Saat E Market is currently generating about 0.35 per unit of risk. If you would invest 2,025 in Ab Select Equity on April 23, 2025 and sell it today you would earn a total of 339.00 from holding Ab Select Equity or generate 16.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Ab Select Equity vs. Saat E Market
Performance |
| Timeline |
| Ab Select Equity |
| Saat E Market |
Ab Select and Saat Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Saat Core
The main advantage of trading using opposite Ab Select and Saat Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Saat Core 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 Core will offset losses from the drop in Saat Core's long position.| Ab Select vs. Enhanced Fixed Income | Ab Select vs. Bts Tactical Fixed | Ab Select vs. Leader Short Term Bond | Ab Select vs. Gmo High Yield |
| Saat Core vs. Calamos Longshort Fund | Saat Core vs. The Short Term Municipal | Saat Core vs. Leader Short Term Bond | Saat Core vs. Blackrock Global Longshort |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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