Correlation Between Boston Trust and Sit Dividend
Can any of the company-specific risk be diversified away by investing in both Boston Trust 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 Boston Trust and Sit Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Trust Midcap and Sit Dividend Growth, you can compare the effects of market volatilities on Boston Trust 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 Boston Trust with a short position of Sit Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Trust and Sit Dividend.
Diversification Opportunities for Boston Trust and Sit Dividend
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boston and Sit is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Boston Trust Midcap 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 Boston Trust 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 Boston Trust Midcap 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 Boston Trust i.e., Boston Trust and Sit Dividend go up and down completely randomly.
Pair Corralation between Boston Trust and Sit Dividend
Assuming the 90 days horizon Boston Trust Midcap is expected to generate 1.05 times more return on investment than Sit Dividend. However, Boston Trust is 1.05 times more volatile than Sit Dividend Growth. It trades about 0.16 of its potential returns per unit of risk. Sit Dividend Growth is currently generating about 0.1 per unit of risk. If you would invest 2,570 in Boston Trust Midcap on August 30, 2024 and sell it today you would earn a total of 126.00 from holding Boston Trust Midcap or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Trust Midcap vs. Sit Dividend Growth
Performance |
| Timeline |
| Boston Trust Midcap |
| Sit Dividend Growth |
Boston Trust and Sit Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Trust and Sit Dividend
The main advantage of trading using opposite Boston Trust and Sit Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Trust 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.| Boston Trust vs. Vanguard Mid Cap Index | Boston Trust vs. Vanguard Mid Cap Index | Boston Trust vs. Vanguard Mid Cap Index | Boston Trust vs. Vanguard Extended Market |
| Sit Dividend vs. Vanguard Total Stock | Sit Dividend vs. Vanguard 500 Index | Sit Dividend vs. Vanguard Total Stock | Sit Dividend vs. Vanguard Total Stock |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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