Correlation Between Siit Screened and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Siit Screened and Saat Defensive 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 Siit Screened and Saat Defensive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Screened World and Saat Defensive Strategy, you can compare the effects of market volatilities on Siit Screened and Saat Defensive 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 Siit Screened with a short position of Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Screened and Saat Defensive.
Diversification Opportunities for Siit Screened and Saat Defensive
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Saat is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Siit Screened World and Saat Defensive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Defensive Strategy and Siit Screened 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 Siit Screened World are associated (or correlated) with Saat Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Defensive Strategy has no effect on the direction of Siit Screened i.e., Siit Screened and Saat Defensive go up and down completely randomly.
Pair Corralation between Siit Screened and Saat Defensive
Assuming the 90 days horizon Siit Screened World is expected to generate 6.61 times more return on investment than Saat Defensive. However, Siit Screened is 6.61 times more volatile than Saat Defensive Strategy. It trades about 0.15 of its potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.3 per unit of risk. If you would invest 1,251 in Siit Screened World on May 26, 2025 and sell it today you would earn a total of 82.00 from holding Siit Screened World or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Screened World vs. Saat Defensive Strategy
Performance |
| Timeline |
| Siit Screened World |
| Saat Defensive Strategy |
Siit Screened and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Screened and Saat Defensive
The main advantage of trading using opposite Siit Screened and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Screened position performs unexpectedly, Saat Defensive 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 Saat Defensive will offset losses from the drop in Saat Defensive's long position.| Siit Screened vs. Prudential High Yield | Siit Screened vs. Access Flex High | Siit Screened vs. Metropolitan West High | Siit Screened vs. Pioneer High Yield |
| Saat Defensive vs. Upright Growth Income | Saat Defensive vs. Multimanager Lifestyle Growth | Saat Defensive vs. T Rowe Price | Saat Defensive vs. Morningstar Growth Etf |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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