Correlation Between Equity Growth and Sit Dividend
Can any of the company-specific risk be diversified away by investing in both Equity Growth and Sit Dividend 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 Equity Growth and Sit Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equity Growth Fund and Sit Dividend Growth, you can compare the effects of market volatilities on Equity Growth and Sit Dividend 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 Equity Growth with a short position of Sit Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equity Growth and Sit Dividend.
Diversification Opportunities for Equity Growth and Sit Dividend
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Equity and Sit is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Equity Growth Fund and Sit Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Dividend Growth and Equity Growth 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 Equity Growth Fund are associated (or correlated) with Sit Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Dividend Growth has no effect on the direction of Equity Growth i.e., Equity Growth and Sit Dividend go up and down completely randomly.
Pair Corralation between Equity Growth and Sit Dividend
Assuming the 90 days horizon Equity Growth Fund is expected to generate 1.22 times more return on investment than Sit Dividend. However, Equity Growth is 1.22 times more volatile than Sit Dividend Growth. It trades about 0.13 of its potential returns per unit of risk. Sit Dividend Growth is currently generating about 0.13 per unit of risk. If you would invest 3,001 in Equity Growth Fund on September 1, 2024 and sell it today you would earn a total of 435.00 from holding Equity Growth Fund or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Equity Growth Fund vs. Sit Dividend Growth
Performance |
| Timeline |
| Equity Growth |
| Sit Dividend Growth |
Equity Growth and Sit Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equity Growth and Sit Dividend
The main advantage of trading using opposite Equity Growth and Sit Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equity Growth position performs unexpectedly, Sit Dividend 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 Sit Dividend will offset losses from the drop in Sit Dividend's long position.| Equity Growth vs. Oklahoma College Savings | Equity Growth vs. Ab Bond Inflation | Equity Growth vs. Cref Inflation Linked Bond | Equity Growth vs. Ab Bond Inflation |
| Sit Dividend vs. Harbor Large Cap | Sit Dividend vs. Janus Growth And | Sit Dividend vs. Boston Trust Midcap | Sit Dividend vs. Sit U S |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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