Correlation Between Guidemark Smallmid and Sit Small
Can any of the company-specific risk be diversified away by investing in both Guidemark Smallmid and Sit 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 Guidemark Smallmid and Sit Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidemark Smallmid Cap and Sit Small Cap, you can compare the effects of market volatilities on Guidemark Smallmid and Sit 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 Guidemark Smallmid with a short position of Sit Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Smallmid and Sit Small.
Diversification Opportunities for Guidemark Smallmid and Sit Small
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guidemark and Sit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Smallmid Cap and Sit Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Small Cap and Guidemark Smallmid 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 Guidemark Smallmid Cap are associated (or correlated) with Sit Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Small Cap has no effect on the direction of Guidemark Smallmid i.e., Guidemark Smallmid and Sit Small go up and down completely randomly.
Pair Corralation between Guidemark Smallmid and Sit Small
Assuming the 90 days horizon Guidemark Smallmid Cap is expected to generate 1.02 times more return on investment than Sit Small. However, Guidemark Smallmid is 1.02 times more volatile than Sit Small Cap. It trades about 0.02 of its potential returns per unit of risk. Sit Small Cap is currently generating about -0.09 per unit of risk. If you would invest 2,246 in Guidemark Smallmid Cap on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Guidemark Smallmid Cap or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidemark Smallmid Cap vs. Sit Small Cap
Performance |
| Timeline |
| Guidemark Smallmid Cap |
| Sit Small Cap |
Guidemark Smallmid and Sit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark Smallmid and Sit Small
The main advantage of trading using opposite Guidemark Smallmid and Sit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark Smallmid position performs unexpectedly, Sit 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 Sit Small will offset losses from the drop in Sit Small's long position.| Guidemark Smallmid vs. General Money Market | Guidemark Smallmid vs. The Gabelli Money | Guidemark Smallmid vs. Putnam Money Market | Guidemark Smallmid vs. Schwab Treasury Money |
| Sit Small vs. Champlain Small | Sit Small vs. Lebenthal Lisanti Small | Sit Small vs. Guidemark Smallmid Cap | Sit Small vs. Siit Small Mid |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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