Correlation Between Arrow Managed and Saat Aggressive
Can any of the company-specific risk be diversified away by investing in both Arrow Managed and Saat Aggressive 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 Arrow Managed and Saat Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Saat Aggressive Strategy, you can compare the effects of market volatilities on Arrow Managed and Saat Aggressive 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 Arrow Managed with a short position of Saat Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Saat Aggressive.
Diversification Opportunities for Arrow Managed and Saat Aggressive
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arrow and Saat is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and Saat Aggressive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Aggressive Strategy and Arrow Managed 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 Arrow Managed Futures are associated (or correlated) with Saat Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Aggressive Strategy has no effect on the direction of Arrow Managed i.e., Arrow Managed and Saat Aggressive go up and down completely randomly.
Pair Corralation between Arrow Managed and Saat Aggressive
Assuming the 90 days horizon Arrow Managed Futures is expected to generate 2.4 times more return on investment than Saat Aggressive. However, Arrow Managed is 2.4 times more volatile than Saat Aggressive Strategy. It trades about 0.13 of its potential returns per unit of risk. Saat Aggressive Strategy is currently generating about 0.13 per unit of risk. If you would invest 461.00 in Arrow Managed Futures on September 3, 2025 and sell it today you would earn a total of 54.00 from holding Arrow Managed Futures or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Managed Futures vs. Saat Aggressive Strategy
Performance |
| Timeline |
| Arrow Managed Futures |
| Saat Aggressive Strategy |
Arrow Managed and Saat Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and Saat Aggressive
The main advantage of trading using opposite Arrow Managed and Saat Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed position performs unexpectedly, Saat Aggressive 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 Aggressive will offset losses from the drop in Saat Aggressive's long position.| Arrow Managed vs. Vy Goldman Sachs | Arrow Managed vs. Invesco Gold Special | Arrow Managed vs. Europac Gold Fund | Arrow Managed vs. James Balanced Golden |
| Saat Aggressive vs. Smallcap Fund Fka | Saat Aggressive vs. Eagle Small Cap | Saat Aggressive vs. Touchstone Small Cap | Saat Aggressive vs. Glg Intl Small |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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