Correlation Between Saat Tax-managed and Gmo High
Can any of the company-specific risk be diversified away by investing in both Saat Tax-managed and Gmo High 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 Tax-managed and Gmo High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Tax Managed Aggressive and Gmo High Yield, you can compare the effects of market volatilities on Saat Tax-managed and Gmo High 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 Tax-managed with a short position of Gmo High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Tax-managed and Gmo High.
Diversification Opportunities for Saat Tax-managed and Gmo High
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saat and Gmo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Saat Tax Managed Aggressive and Gmo High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo High Yield and Saat Tax-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 Saat Tax Managed Aggressive are associated (or correlated) with Gmo High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo High Yield has no effect on the direction of Saat Tax-managed i.e., Saat Tax-managed and Gmo High go up and down completely randomly.
Pair Corralation between Saat Tax-managed and Gmo High
Assuming the 90 days horizon Saat Tax Managed Aggressive is expected to generate 3.85 times more return on investment than Gmo High. However, Saat Tax-managed is 3.85 times more volatile than Gmo High Yield. It trades about 0.25 of its potential returns per unit of risk. Gmo High Yield is currently generating about 0.36 per unit of risk. If you would invest 2,636 in Saat Tax Managed Aggressive on May 28, 2025 and sell it today you would earn a total of 236.00 from holding Saat Tax Managed Aggressive or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Tax Managed Aggressive vs. Gmo High Yield
Performance |
| Timeline |
| Saat Tax Managed |
| Gmo High Yield |
Saat Tax-managed and Gmo High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Tax-managed and Gmo High
The main advantage of trading using opposite Saat Tax-managed and Gmo High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Tax-managed position performs unexpectedly, Gmo High 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 Gmo High will offset losses from the drop in Gmo High's long position.| Saat Tax-managed vs. Saat E Market | Saat Tax-managed vs. Saat Moderate Strategy | Saat Tax-managed vs. Saat Market Growth | Saat Tax-managed vs. Dreyfus Midcap Index |
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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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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