Correlation Between Growth Fund and Sit Large
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Sit Large 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 Growth Fund and Sit Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Sit Large Cap, you can compare the effects of market volatilities on Growth Fund and Sit Large 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 Growth Fund with a short position of Sit Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Sit Large.
Diversification Opportunities for Growth Fund and Sit Large
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and Sit is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Sit Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Large Cap and Growth Fund 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 Growth Fund Of are associated (or correlated) with Sit Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Large Cap has no effect on the direction of Growth Fund i.e., Growth Fund and Sit Large go up and down completely randomly.
Pair Corralation between Growth Fund and Sit Large
Assuming the 90 days horizon Growth Fund is expected to generate 1.04 times less return on investment than Sit Large. In addition to that, Growth Fund is 1.03 times more volatile than Sit Large Cap. It trades about 0.11 of its total potential returns per unit of risk. Sit Large Cap is currently generating about 0.11 per unit of volatility. If you would invest 5,220 in Sit Large Cap on August 30, 2024 and sell it today you would earn a total of 2,646 from holding Sit Large Cap or generate 50.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Sit Large Cap
Performance |
| Timeline |
| Growth Fund |
| Sit Large Cap |
Growth Fund and Sit Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Sit Large
The main advantage of trading using opposite Growth Fund and Sit Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Sit Large 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 Large will offset losses from the drop in Sit Large's long position.| Growth Fund vs. Victory Rs Partners | Growth Fund vs. Mid Cap Value Profund | Growth Fund vs. Applied Finance Explorer | Growth Fund vs. Lord Abbett Small |
| Sit Large vs. Eventide Healthcare Life | Sit Large vs. Lord Abbett Health | Sit Large vs. Alger Health Sciences | Sit Large vs. Baron Health Care |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |