Correlation Between Saat Aggressive and Simt Global
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive and Simt Global 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 Aggressive and Simt Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Aggressive Strategy and Simt Global Managed, you can compare the effects of market volatilities on Saat Aggressive and Simt Global 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 Aggressive with a short position of Simt Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Simt Global.
Diversification Opportunities for Saat Aggressive and Simt Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Simt is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy and Simt Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Global Managed and Saat Aggressive 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 Aggressive Strategy are associated (or correlated) with Simt Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Global Managed has no effect on the direction of Saat Aggressive i.e., Saat Aggressive and Simt Global go up and down completely randomly.
Pair Corralation between Saat Aggressive and Simt Global
Assuming the 90 days horizon Saat Aggressive Strategy is expected to generate 1.05 times more return on investment than Simt Global. However, Saat Aggressive is 1.05 times more volatile than Simt Global Managed. It trades about 0.39 of its potential returns per unit of risk. Simt Global Managed is currently generating about 0.21 per unit of risk. If you would invest 1,388 in Saat Aggressive Strategy on April 19, 2025 and sell it today you would earn a total of 211.00 from holding Saat Aggressive Strategy or generate 15.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Aggressive Strategy vs. Simt Global Managed
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Simt Global Managed |
Saat Aggressive and Simt Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Simt Global
The main advantage of trading using opposite Saat Aggressive and Simt Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive position performs unexpectedly, Simt Global 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 Simt Global will offset losses from the drop in Simt Global's long position.| Saat Aggressive vs. T Rowe Price | Saat Aggressive vs. Transamerica High Yield | Saat Aggressive vs. Lord Abbett Short | Saat Aggressive vs. Dunham High Yield |
| Simt Global vs. Simt Multi Asset Income | Simt Global vs. Sit Emerging Markets | Simt Global vs. Simt E Fixed | Simt Global vs. Sit International Equity |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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