Correlation Between Saratoga Small and Large Capitalization
Can any of the company-specific risk be diversified away by investing in both Saratoga Small and Large Capitalization 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 Saratoga Small and Large Capitalization into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saratoga Small Capitalization and Large Capitalization Growth, you can compare the effects of market volatilities on Saratoga Small and Large Capitalization 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 Saratoga Small with a short position of Large Capitalization. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Small and Large Capitalization.
Diversification Opportunities for Saratoga Small and Large Capitalization
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saratoga and Large is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Small Capitalization and Large Capitalization Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Capitalization and Saratoga Small 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 Saratoga Small Capitalization are associated (or correlated) with Large Capitalization. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Capitalization has no effect on the direction of Saratoga Small i.e., Saratoga Small and Large Capitalization go up and down completely randomly.
Pair Corralation between Saratoga Small and Large Capitalization
If you would invest 36.00 in Saratoga Small Capitalization on June 12, 2025 and sell it today you would earn a total of 4.00 from holding Saratoga Small Capitalization or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Saratoga Small Capitalization vs. Large Capitalization Growth
Performance |
| Timeline |
| Saratoga Small Capit |
| Large Capitalization |
Risk-Adjusted Performance
Good
Weak | Strong |
Saratoga Small and Large Capitalization Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Small and Large Capitalization
The main advantage of trading using opposite Saratoga Small and Large Capitalization positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Small position performs unexpectedly, Large Capitalization 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 Large Capitalization will offset losses from the drop in Large Capitalization's long position.| Saratoga Small vs. American Funds Retirement | Saratoga Small vs. Mfs Lifetime Retirement | Saratoga Small vs. Moderately Aggressive Balanced | Saratoga Small vs. Sa Worldwide Moderate |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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