Correlation Between 361 Global and Siit Global
Can any of the company-specific risk be diversified away by investing in both 361 Global and Siit 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 361 Global and Siit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 361 Global Longshort and Siit Global Managed, you can compare the effects of market volatilities on 361 Global and Siit 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 361 Global with a short position of Siit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and Siit Global.
Diversification Opportunities for 361 Global and Siit Global
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 361 and Siit is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort and Siit Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Global Managed and 361 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 361 Global Longshort are associated (or correlated) with Siit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Global Managed has no effect on the direction of 361 Global i.e., 361 Global and Siit Global go up and down completely randomly.
Pair Corralation between 361 Global and Siit Global
Assuming the 90 days horizon 361 Global is expected to generate 6.38 times less return on investment than Siit Global. But when comparing it to its historical volatility, 361 Global Longshort is 1.0 times less risky than Siit Global. It trades about 0.02 of its potential returns per unit of risk. Siit Global Managed is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,245 in Siit Global Managed on September 3, 2024 and sell it today you would earn a total of 48.00 from holding Siit Global Managed or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
361 Global Longshort vs. Siit Global Managed
Performance |
| Timeline |
| 361 Global Longshort |
| Siit Global Managed |
361 Global and Siit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 361 Global and Siit Global
The main advantage of trading using opposite 361 Global and Siit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global position performs unexpectedly, Siit 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 Siit Global will offset losses from the drop in Siit Global's long position.| 361 Global vs. Aqr Long Short Equity | 361 Global vs. Old Westbury Short Term | 361 Global vs. Locorr Longshort Modities | 361 Global vs. Federated Short Term Income |
| Siit Global vs. Ab Global Risk | Siit Global vs. Vanguard Star Fund | Siit Global vs. Morningstar Aggressive Growth | Siit Global vs. Gmo High Yield |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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