Correlation Between Ishares Aggregate and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Ishares Aggregate and Saat Defensive 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 Ishares Aggregate and Saat Defensive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ishares Aggregate Bond and Saat Defensive Strategy, you can compare the effects of market volatilities on Ishares Aggregate and Saat Defensive 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 Ishares Aggregate with a short position of Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ishares Aggregate and Saat Defensive.
Diversification Opportunities for Ishares Aggregate and Saat Defensive
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ishares and Saat is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ishares Aggregate Bond and Saat Defensive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Defensive Strategy and Ishares Aggregate 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 Ishares Aggregate Bond are associated (or correlated) with Saat Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Defensive Strategy has no effect on the direction of Ishares Aggregate i.e., Ishares Aggregate and Saat Defensive go up and down completely randomly.
Pair Corralation between Ishares Aggregate and Saat Defensive
Assuming the 90 days horizon Ishares Aggregate is expected to generate 1.03 times less return on investment than Saat Defensive. In addition to that, Ishares Aggregate is 2.21 times more volatile than Saat Defensive Strategy. It trades about 0.08 of its total potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.19 per unit of volatility. If you would invest 956.00 in Saat Defensive Strategy on September 4, 2025 and sell it today you would earn a total of 11.00 from holding Saat Defensive Strategy or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ishares Aggregate Bond vs. Saat Defensive Strategy
Performance |
| Timeline |
| Ishares Aggregate Bond |
| Saat Defensive Strategy |
Ishares Aggregate and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ishares Aggregate and Saat Defensive
The main advantage of trading using opposite Ishares Aggregate and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ishares Aggregate position performs unexpectedly, Saat Defensive 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 Defensive will offset losses from the drop in Saat Defensive's long position.| Ishares Aggregate vs. Blackrock California Municipal | Ishares Aggregate vs. Blackrock Balanced Capital | Ishares Aggregate vs. Mkeax | Ishares Aggregate vs. Blackrock Eurofund Class |
| Saat Defensive vs. Dws Government Money | Saat Defensive vs. Elfun Government Money | Saat Defensive vs. Putnam Money Market | Saat Defensive vs. Edward Jones Money |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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