Correlation Between Saat Market and Defensive Market
Can any of the company-specific risk be diversified away by investing in both Saat Market and Defensive Market 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 Market and Defensive Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Market Growth and Defensive Market Strategies, you can compare the effects of market volatilities on Saat Market and Defensive Market 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 Market with a short position of Defensive Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Defensive Market.
Diversification Opportunities for Saat Market and Defensive Market
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saat and Defensive is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Defensive Market Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defensive Market Str and Saat Market 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 Market Growth are associated (or correlated) with Defensive Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defensive Market Str has no effect on the direction of Saat Market i.e., Saat Market and Defensive Market go up and down completely randomly.
Pair Corralation between Saat Market and Defensive Market
Assuming the 90 days horizon Saat Market Growth is expected to generate 1.14 times more return on investment than Defensive Market. However, Saat Market is 1.14 times more volatile than Defensive Market Strategies. It trades about 0.23 of its potential returns per unit of risk. Defensive Market Strategies is currently generating about 0.22 per unit of risk. If you would invest 1,287 in Saat Market Growth on June 3, 2025 and sell it today you would earn a total of 75.00 from holding Saat Market Growth or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Market Growth vs. Defensive Market Strategies
Performance |
| Timeline |
| Saat Market Growth |
| Defensive Market Str |
Saat Market and Defensive Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Defensive Market
The main advantage of trading using opposite Saat Market and Defensive Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market position performs unexpectedly, Defensive Market 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 Defensive Market will offset losses from the drop in Defensive Market's long position.| Saat Market vs. Simt Multi Asset Accumulation | Saat Market vs. Simt Real Return | Saat Market vs. Simt Small Cap | Saat Market vs. Siit Screened World |
| Defensive Market vs. Harbor Vertible Securities | Defensive Market vs. Putnam Convertible Securities | Defensive Market vs. Virtus Convertible | Defensive Market vs. Fidelity Sai Convertible |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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