Correlation Between Fa 529 and Sit Global
Can any of the company-specific risk be diversified away by investing in both Fa 529 and Sit Global 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 Fa 529 and Sit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fa 529 Aggressive and Sit Global Dividend, you can compare the effects of market volatilities on Fa 529 and Sit Global 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 Fa 529 with a short position of Sit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fa 529 and Sit Global.
Diversification Opportunities for Fa 529 and Sit Global
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FFCGX and Sit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fa 529 Aggressive and Sit Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Global Dividend and Fa 529 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 Fa 529 Aggressive are associated (or correlated) with Sit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Global Dividend has no effect on the direction of Fa 529 i.e., Fa 529 and Sit Global go up and down completely randomly.
Pair Corralation between Fa 529 and Sit Global
Assuming the 90 days horizon Fa 529 Aggressive is expected to generate 1.02 times more return on investment than Sit Global. However, Fa 529 is 1.02 times more volatile than Sit Global Dividend. It trades about 0.13 of its potential returns per unit of risk. Sit Global Dividend is currently generating about 0.11 per unit of risk. If you would invest 3,600 in Fa 529 Aggressive on November 3, 2024 and sell it today you would earn a total of 459.00 from holding Fa 529 Aggressive or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fa 529 Aggressive vs. Sit Global Dividend
Performance |
| Timeline |
| Fa 529 Aggressive |
| Sit Global Dividend |
Fa 529 and Sit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fa 529 and Sit Global
The main advantage of trading using opposite Fa 529 and Sit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fa 529 position performs unexpectedly, Sit Global 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 Global will offset losses from the drop in Sit Global's long position.| Fa 529 vs. Rationalpier 88 Convertible | Fa 529 vs. Virtus Convertible | Fa 529 vs. Calamos Dynamic Convertible | Fa 529 vs. Columbia Convertible Securities |
| Sit Global vs. Goldman Sachs Short | Sit Global vs. Morningstar Defensive Bond | Sit Global vs. Multisector Bond Sma | Sit Global vs. Ab Bond 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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