Correlation Between Saat Tax-managed and Gateway Fund
Can any of the company-specific risk be diversified away by investing in both Saat Tax-managed and Gateway Fund 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 Gateway Fund 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 Gateway Fund Class, you can compare the effects of market volatilities on Saat Tax-managed and Gateway Fund 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 Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Tax-managed and Gateway Fund.
Diversification Opportunities for Saat Tax-managed and Gateway Fund
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and Gateway is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Saat Tax Managed Aggressive and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class 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 Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of Saat Tax-managed i.e., Saat Tax-managed and Gateway Fund go up and down completely randomly.
Pair Corralation between Saat Tax-managed and Gateway Fund
Assuming the 90 days horizon Saat Tax Managed Aggressive is expected to generate 1.4 times more return on investment than Gateway Fund. However, Saat Tax-managed is 1.4 times more volatile than Gateway Fund Class. It trades about 0.12 of its potential returns per unit of risk. Gateway Fund Class is currently generating about 0.15 per unit of risk. If you would invest 2,835 in Saat Tax Managed Aggressive on September 1, 2025 and sell it today you would earn a total of 136.00 from holding Saat Tax Managed Aggressive or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Tax Managed Aggressive vs. Gateway Fund Class
Performance |
| Timeline |
| Saat Tax Managed |
| Gateway Fund Class |
Saat Tax-managed and Gateway Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Tax-managed and Gateway Fund
The main advantage of trading using opposite Saat Tax-managed and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Tax-managed position performs unexpectedly, Gateway Fund 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 Gateway Fund will offset losses from the drop in Gateway Fund's long position.| Saat Tax-managed vs. Dreyfus High Yield | Saat Tax-managed vs. Aggressive Balanced Allocation | Saat Tax-managed vs. Intal High Relative | Saat Tax-managed vs. Inverse High Yield |
| Gateway Fund vs. Ab High Income | Gateway Fund vs. Intal High Relative | Gateway Fund vs. Saat Tax Managed Aggressive | Gateway Fund vs. John Hancock High |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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