Correlation Between Sa International and Sa Real
Can any of the company-specific risk be diversified away by investing in both Sa International and Sa Real 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 International and Sa Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sa International Value and Sa Real Estate, you can compare the effects of market volatilities on Sa International and Sa Real 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 International with a short position of Sa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sa International and Sa Real.
Diversification Opportunities for Sa International and Sa Real
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SAHMX and SAREX is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sa International Value and Sa Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Real Estate and Sa International 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 International Value are associated (or correlated) with Sa Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Real Estate has no effect on the direction of Sa International i.e., Sa International and Sa Real go up and down completely randomly.
Pair Corralation between Sa International and Sa Real
Assuming the 90 days horizon Sa International Value is expected to generate 0.79 times more return on investment than Sa Real. However, Sa International Value is 1.27 times less risky than Sa Real. It trades about 0.1 of its potential returns per unit of risk. Sa Real Estate is currently generating about -0.01 per unit of risk. If you would invest 1,670 in Sa International Value on August 28, 2025 and sell it today you would earn a total of 62.00 from holding Sa International Value or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sa International Value vs. Sa Real Estate
Performance |
| Timeline |
| Sa International Value |
| Sa Real Estate |
Sa International and Sa Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sa International and Sa Real
The main advantage of trading using opposite Sa International and Sa Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa International position performs unexpectedly, Sa Real 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 Sa Real will offset losses from the drop in Sa Real's long position.| Sa International vs. Alternative Asset Allocation | Sa International vs. The Hartford Growth | Sa International vs. Gmo Equity Allocation | Sa International vs. Franklin Moderate Allocation |
| Sa Real vs. Voya Government Money | Sa Real vs. Edward Jones Money | Sa Real vs. Fidelity Money Market | Sa Real vs. Money Market Obligations |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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