Correlation Between All Asset and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both All Asset 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 All Asset and Saat Defensive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between All Asset Fund and Saat Defensive Strategy, you can compare the effects of market volatilities on All Asset 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 All Asset with a short position of Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of All Asset and Saat Defensive.
Diversification Opportunities for All Asset and Saat Defensive
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between All and Saat is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding All Asset Fund 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 All Asset 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 All Asset Fund 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 All Asset i.e., All Asset and Saat Defensive go up and down completely randomly.
Pair Corralation between All Asset and Saat Defensive
Assuming the 90 days horizon All Asset Fund is expected to generate 7.49 times more return on investment than Saat Defensive. However, All Asset is 7.49 times more volatile than Saat Defensive Strategy. It trades about 0.23 of its potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.5 per unit of risk. If you would invest 1,095 in All Asset Fund on May 27, 2025 and sell it today you would earn a total of 55.00 from holding All Asset Fund or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
All Asset Fund vs. Saat Defensive Strategy
Performance |
| Timeline |
| All Asset Fund |
| Saat Defensive Strategy |
All Asset and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with All Asset and Saat Defensive
The main advantage of trading using opposite All Asset and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if All Asset 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.| All Asset vs. Boston Partners Small | All Asset vs. Foundry Partners Fundamental | All Asset vs. Omni Small Cap Value | All Asset vs. Lsv Small Cap |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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