Correlation Between Champlain Small and Siit Small
Can any of the company-specific risk be diversified away by investing in both Champlain Small and Siit Small 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 Champlain Small and Siit Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and Siit Small Mid, you can compare the effects of market volatilities on Champlain Small and Siit Small 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 Champlain Small with a short position of Siit Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Siit Small.
Diversification Opportunities for Champlain Small and Siit Small
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Champlain and Siit is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small and Siit Small Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Small Mid and Champlain Small 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 Champlain Small are associated (or correlated) with Siit Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Small Mid has no effect on the direction of Champlain Small i.e., Champlain Small and Siit Small go up and down completely randomly.
Pair Corralation between Champlain Small and Siit Small
Assuming the 90 days horizon Champlain Small is expected to generate 1.26 times more return on investment than Siit Small. However, Champlain Small is 1.26 times more volatile than Siit Small Mid. It trades about 0.02 of its potential returns per unit of risk. Siit Small Mid is currently generating about -0.12 per unit of risk. If you would invest 2,550 in Champlain Small on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Champlain Small or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Small vs. Siit Small Mid
Performance |
| Timeline |
| Champlain Small |
| Siit Small Mid |
Champlain Small and Siit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and Siit Small
The main advantage of trading using opposite Champlain Small and Siit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small position performs unexpectedly, Siit Small 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 Small will offset losses from the drop in Siit Small's long position.| Champlain Small vs. Needham Aggressive Growth | Champlain Small vs. Ultramid Cap Profund Ultramid Cap | Champlain Small vs. HUMANA INC | Champlain Small vs. Barloworld Ltd ADR |
| Siit Small vs. Rationalpier 88 Convertible | Siit Small vs. Allianzgi Convertible Income | Siit Small vs. Gabelli Convertible And | Siit Small vs. Lord Abbett Convertible |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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