Correlation Between Simt Global and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Simt Global 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 Global 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 Global Managed and Saat Defensive Strategy, you can compare the effects of market volatilities on Simt Global 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 Global with a short position of Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Global and Saat Defensive.
Diversification Opportunities for Simt Global and Saat Defensive
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simt and Saat is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Simt Global Managed 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 Global 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 Global Managed 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 Global i.e., Simt Global and Saat Defensive go up and down completely randomly.
Pair Corralation between Simt Global and Saat Defensive
Assuming the 90 days horizon Simt Global Managed is expected to generate 10.02 times more return on investment than Saat Defensive. However, Simt Global is 10.02 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 0.48 per unit of risk. If you would invest 1,062 in Simt Global Managed on April 26, 2025 and sell it today you would earn a total of 58.00 from holding Simt Global Managed or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Global Managed vs. Saat Defensive Strategy
Performance |
| Timeline |
| Simt Global Managed |
| Saat Defensive Strategy |
Simt Global and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Global and Saat Defensive
The main advantage of trading using opposite Simt Global and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Global 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 Global vs. Transamerica International Small | Simt Global vs. Nt International Small Mid | Simt Global vs. Guidemark Smallmid Cap | Simt Global vs. Siit Small Cap |
| Saat Defensive vs. Retirement Living Through | Saat Defensive vs. Voya Target Retirement | Saat Defensive vs. Lifestyle Ii Moderate | Saat Defensive vs. Deutsche Multi Asset 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |