Correlation Between Sa Emerging and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Sa Emerging and Multimanager Lifestyle 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 Sa Emerging and Multimanager Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sa Emerging Markets and Multimanager Lifestyle Aggressive, you can compare the effects of market volatilities on Sa Emerging and Multimanager Lifestyle 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 Sa Emerging with a short position of Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sa Emerging and Multimanager Lifestyle.
Diversification Opportunities for Sa Emerging and Multimanager Lifestyle
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SAEMX and Multimanager is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sa Emerging Markets and Multimanager Lifestyle Aggress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle and Sa Emerging 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 Sa Emerging Markets are associated (or correlated) with Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Sa Emerging i.e., Sa Emerging and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Sa Emerging and Multimanager Lifestyle
Assuming the 90 days horizon Sa Emerging Markets is expected to generate 1.14 times more return on investment than Multimanager Lifestyle. However, Sa Emerging is 1.14 times more volatile than Multimanager Lifestyle Aggressive. It trades about 0.2 of its potential returns per unit of risk. Multimanager Lifestyle Aggressive is currently generating about 0.21 per unit of risk. If you would invest 1,079 in Sa Emerging Markets on May 30, 2025 and sell it today you would earn a total of 89.00 from holding Sa Emerging Markets or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Sa Emerging Markets vs. Multimanager Lifestyle Aggress
Performance |
| Timeline |
| Sa Emerging Markets |
| Multimanager Lifestyle |
Sa Emerging and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sa Emerging and Multimanager Lifestyle
The main advantage of trading using opposite Sa Emerging and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa Emerging position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle's long position.| Sa Emerging vs. Pace Smallmedium Value | Sa Emerging vs. Hunter Small Cap | Sa Emerging vs. Siit Small Cap | Sa Emerging vs. Guidemark Smallmid 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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