Correlation Between Sit Global and Sit Mutual
Can any of the company-specific risk be diversified away by investing in both Sit Global and Sit Mutual 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 Sit Global and Sit Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Global Dividend and Sit Mutual Funds, you can compare the effects of market volatilities on Sit Global and Sit Mutual 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 Sit Global with a short position of Sit Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Global and Sit Mutual.
Diversification Opportunities for Sit Global and Sit Mutual
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sit and Sit is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sit Global Dividend and Sit Mutual Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Mutual Funds and Sit Global 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 Sit Global Dividend are associated (or correlated) with Sit Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Mutual Funds has no effect on the direction of Sit Global i.e., Sit Global and Sit Mutual go up and down completely randomly.
Pair Corralation between Sit Global and Sit Mutual
Assuming the 90 days horizon Sit Global Dividend is expected to under-perform the Sit Mutual. In addition to that, Sit Global is 3.03 times more volatile than Sit Mutual Funds. It trades about -0.01 of its total potential returns per unit of risk. Sit Mutual Funds is currently generating about 0.24 per unit of volatility. If you would invest 947.00 in Sit Mutual Funds on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Sit Mutual Funds or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sit Global Dividend vs. Sit Mutual Funds
Performance |
| Timeline |
| Sit Global Dividend |
| Sit Mutual Funds |
Sit Global and Sit Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Global and Sit Mutual
The main advantage of trading using opposite Sit Global and Sit Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Global position performs unexpectedly, Sit Mutual 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 Mutual will offset losses from the drop in Sit Mutual's long position.| Sit Global vs. Ashmore Emerging Markets | Sit Global vs. Origin Emerging Markets | Sit Global vs. Transamerica Emerging Markets | Sit Global vs. Ep Emerging Markets |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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