Correlation Between Simt Us and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Simt Us 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 Us 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 Managed Volatility and Saat Defensive Strategy, you can compare the effects of market volatilities on Simt Us 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 Us with a short position of Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Us and Saat Defensive.
Diversification Opportunities for Simt Us and Saat Defensive
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simt and Saat is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Simt Managed Volatility 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 Us 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 Managed Volatility 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 Us i.e., Simt Us and Saat Defensive go up and down completely randomly.
Pair Corralation between Simt Us and Saat Defensive
Assuming the 90 days horizon Simt Managed Volatility is expected to generate 11.84 times more return on investment than Saat Defensive. However, Simt Us is 11.84 times more volatile than Saat Defensive Strategy. It trades about 0.17 of its potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.5 per unit of risk. If you would invest 1,375 in Simt Managed Volatility on April 22, 2025 and sell it today you would earn a total of 92.00 from holding Simt Managed Volatility or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Managed Volatility vs. Saat Defensive Strategy
Performance |
| Timeline |
| Simt Managed Volatility |
| Saat Defensive Strategy |
Simt Us and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Us and Saat Defensive
The main advantage of trading using opposite Simt Us and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Us 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 Us vs. Simt Global Managed | Simt Us vs. Simt High Yield | Simt Us vs. Sdit Short Duration | Simt Us vs. Simt Real Return |
| Saat Defensive vs. Jpmorgan Diversified Fund | Saat Defensive vs. American Funds Conservative | Saat Defensive vs. Columbia Diversified Equity | Saat Defensive vs. Mainstay Conservative Allocation |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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