Correlation Between Saat Defensive and Global Strategist
Can any of the company-specific risk be diversified away by investing in both Saat Defensive and Global Strategist 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 Saat Defensive and Global Strategist into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Defensive Strategy and Global Strategist Portfolio, you can compare the effects of market volatilities on Saat Defensive and Global Strategist 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 Saat Defensive with a short position of Global Strategist. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Defensive and Global Strategist.
Diversification Opportunities for Saat Defensive and Global Strategist
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Global is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Saat Defensive Strategy and Global Strategist Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Strategist and Saat Defensive 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 Saat Defensive Strategy are associated (or correlated) with Global Strategist. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Strategist has no effect on the direction of Saat Defensive i.e., Saat Defensive and Global Strategist go up and down completely randomly.
Pair Corralation between Saat Defensive and Global Strategist
Assuming the 90 days horizon Saat Defensive is expected to generate 4.64 times less return on investment than Global Strategist. But when comparing it to its historical volatility, Saat Defensive Strategy is 4.3 times less risky than Global Strategist. It trades about 0.34 of its potential returns per unit of risk. Global Strategist Portfolio is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,859 in Global Strategist Portfolio on April 3, 2025 and sell it today you would earn a total of 55.00 from holding Global Strategist Portfolio or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Defensive Strategy vs. Global Strategist Portfolio
Performance |
| Timeline |
| Saat Defensive Strategy |
| Global Strategist |
Saat Defensive and Global Strategist Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Defensive and Global Strategist
The main advantage of trading using opposite Saat Defensive and Global Strategist positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Defensive position performs unexpectedly, Global Strategist 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 Global Strategist will offset losses from the drop in Global Strategist's long position.| Saat Defensive vs. Siit Emerging Markets | Saat Defensive vs. Mondrian Emerging Markets | Saat Defensive vs. Pnc Emerging Markets | Saat Defensive vs. Gmo Emerging Markets |
| Global Strategist vs. Emerging Markets Equity | Global Strategist vs. Global Fixed Income | Global Strategist vs. Global Fixed Income | Global Strategist vs. Global Fixed Income |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |