Correlation Between Eagle Small and Siit Small
Can any of the company-specific risk be diversified away by investing in both Eagle 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 Eagle 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 Eagle Small Cap and Siit Small Mid, you can compare the effects of market volatilities on Eagle 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 Eagle Small with a short position of Siit Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Siit Small.
Diversification Opportunities for Eagle Small and Siit Small
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Eagle and Siit is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap 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 Eagle 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 Eagle Small Cap 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 Eagle Small i.e., Eagle Small and Siit Small go up and down completely randomly.
Pair Corralation between Eagle Small and Siit Small
Assuming the 90 days horizon Eagle Small Cap is expected to generate 1.11 times more return on investment than Siit Small. However, Eagle Small is 1.11 times more volatile than Siit Small Mid. It trades about 0.21 of its potential returns per unit of risk. Siit Small Mid is currently generating about 0.23 per unit of risk. If you would invest 2,536 in Eagle Small Cap on August 27, 2024 and sell it today you would earn a total of 163.00 from holding Eagle Small Cap or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Small Cap vs. Siit Small Mid
Performance |
| Timeline |
| Eagle Small Cap |
| Siit Small Mid |
Eagle Small and Siit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Siit Small
The main advantage of trading using opposite Eagle Small and Siit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle 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.| Eagle Small vs. Pgim Jennison Technology | Eagle Small vs. Janus Global Technology | Eagle Small vs. Towpath Technology | Eagle Small vs. Biotechnology Ultrasector Profund |
| Siit Small vs. Quantitative U S | Siit Small vs. Morningstar Unconstrained Allocation | Siit Small vs. Siit Large Cap | Siit Small vs. Touchstone Large Cap |
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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