Correlation Between Simt Sp and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Simt Sp 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 Simt Sp and Saat Defensive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Sp 500 and Saat Defensive Strategy, you can compare the effects of market volatilities on Simt Sp 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 Simt Sp with a short position of Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Sp and Saat Defensive.
Diversification Opportunities for Simt Sp and Saat Defensive
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Saat is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Simt Sp 500 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 Simt Sp 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 Simt Sp 500 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 Simt Sp i.e., Simt Sp and Saat Defensive go up and down completely randomly.
Pair Corralation between Simt Sp and Saat Defensive
Assuming the 90 days horizon Simt Sp 500 is expected to generate 15.73 times more return on investment than Saat Defensive. However, Simt Sp is 15.73 times more volatile than Saat Defensive Strategy. It trades about 0.4 of its potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.53 per unit of risk. If you would invest 8,251 in Simt Sp 500 on April 19, 2025 and sell it today you would earn a total of 1,848 from holding Simt Sp 500 or generate 22.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Sp 500 vs. Saat Defensive Strategy
Performance |
| Timeline |
| Simt Sp 500 |
| Saat Defensive Strategy |
Simt Sp and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Sp and Saat Defensive
The main advantage of trading using opposite Simt Sp and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Sp 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.| Simt Sp vs. Simt Small Cap | Simt Sp vs. Simt Small Cap | Simt Sp vs. Simt Large Cap | Simt Sp vs. Sit International Equity |
| Saat Defensive vs. Goldman Sachs Clean | Saat Defensive vs. Invesco Gold Special | Saat Defensive vs. Precious Metals And | Saat Defensive vs. Global Gold Fund |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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