Correlation Between Jackson Square and Saat Tax

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Can any of the company-specific risk be diversified away by investing in both Jackson Square and Saat Tax 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 Jackson Square and Saat Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Square Smid Cap and Saat Tax Managed Aggressive, you can compare the effects of market volatilities on Jackson Square and Saat Tax 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 Jackson Square with a short position of Saat Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Square and Saat Tax.

Diversification Opportunities for Jackson Square and Saat Tax

0.23
  Correlation Coefficient

Modest diversification

The 3 months correlation between Jackson and Saat is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Square Smid Cap and Saat Tax Managed Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Tax Managed and Jackson Square 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 Jackson Square Smid Cap are associated (or correlated) with Saat Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Tax Managed has no effect on the direction of Jackson Square i.e., Jackson Square and Saat Tax go up and down completely randomly.

Pair Corralation between Jackson Square and Saat Tax

Assuming the 90 days horizon Jackson Square Smid Cap is expected to generate 1.78 times more return on investment than Saat Tax. However, Jackson Square is 1.78 times more volatile than Saat Tax Managed Aggressive. It trades about 0.09 of its potential returns per unit of risk. Saat Tax Managed Aggressive is currently generating about 0.05 per unit of risk. If you would invest  1,895  in Jackson Square Smid Cap on September 11, 2025 and sell it today you would earn a total of  98.00  from holding Jackson Square Smid Cap or generate 5.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy90.48%
ValuesDaily Returns

Jackson Square Smid Cap  vs.  Saat Tax Managed Aggressive

 Performance 
       Timeline  
Jackson Square Smid 

Risk-Adjusted Performance

Mild

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

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Saat Tax Managed Aggressive are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Saat Tax is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jackson Square and Saat Tax Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jackson Square and Saat Tax

The main advantage of trading using opposite Jackson Square and Saat Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Square position performs unexpectedly, Saat Tax 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 Tax will offset losses from the drop in Saat Tax's long position.
The idea behind Jackson Square Smid Cap and Saat Tax Managed Aggressive 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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