Correlation Between Short Duration and Sit Esg
Can any of the company-specific risk be diversified away by investing in both Short Duration and Sit Esg 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 Short Duration and Sit Esg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Duration Inflation and Sit Esg Growth, you can compare the effects of market volatilities on Short Duration and Sit Esg 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 Short Duration with a short position of Sit Esg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Duration and Sit Esg.
Diversification Opportunities for Short Duration and Sit Esg
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Short and Sit is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Short Duration Inflation and Sit Esg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Esg Growth and Short Duration 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 Short Duration Inflation are associated (or correlated) with Sit Esg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Esg Growth has no effect on the direction of Short Duration i.e., Short Duration and Sit Esg go up and down completely randomly.
Pair Corralation between Short Duration and Sit Esg
Assuming the 90 days horizon Short Duration is expected to generate 9.77 times less return on investment than Sit Esg. But when comparing it to its historical volatility, Short Duration Inflation is 6.19 times less risky than Sit Esg. It trades about 0.04 of its potential returns per unit of risk. Sit Esg Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,240 in Sit Esg Growth on August 26, 2024 and sell it today you would earn a total of 20.00 from holding Sit Esg Growth or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Short Duration Inflation vs. Sit Esg Growth
Performance |
| Timeline |
| Short Duration Inflation |
| Sit Esg Growth |
Short Duration and Sit Esg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Duration and Sit Esg
The main advantage of trading using opposite Short Duration and Sit Esg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Duration position performs unexpectedly, Sit Esg 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 Esg will offset losses from the drop in Sit Esg's long position.| Short Duration vs. Inflation Adjusted Bond Fund | Short Duration vs. Diversified Bond Fund | Short Duration vs. Short Duration Fund | Short Duration vs. Core Plus Fund |
| Sit Esg vs. Ab Bond Inflation | Sit Esg vs. Western Asset Inflation | Sit Esg vs. Loomis Sayles Inflation | Sit Esg vs. Short Duration Inflation |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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