Correlation Between Siit Large and Vy Baron
Can any of the company-specific risk be diversified away by investing in both Siit Large and Vy Baron 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 Siit Large and Vy Baron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Large Cap and Vy Baron Growth, you can compare the effects of market volatilities on Siit Large and Vy Baron 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 Siit Large with a short position of Vy Baron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Vy Baron.
Diversification Opportunities for Siit Large and Vy Baron
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and IBSAX is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Vy Baron Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Baron Growth and Siit Large 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 Siit Large Cap are associated (or correlated) with Vy Baron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Baron Growth has no effect on the direction of Siit Large i.e., Siit Large and Vy Baron go up and down completely randomly.
Pair Corralation between Siit Large and Vy Baron
Assuming the 90 days horizon Siit Large Cap is expected to generate 1.08 times more return on investment than Vy Baron. However, Siit Large is 1.08 times more volatile than Vy Baron Growth. It trades about 0.04 of its potential returns per unit of risk. Vy Baron Growth is currently generating about 0.0 per unit of risk. If you would invest 17,097 in Siit Large Cap on October 25, 2024 and sell it today you would earn a total of 3,264 from holding Siit Large Cap or generate 19.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Vy Baron Growth
Performance |
| Timeline |
| Siit Large Cap |
| Vy Baron Growth |
Siit Large and Vy Baron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Vy Baron
The main advantage of trading using opposite Siit Large and Vy Baron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Vy Baron 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 Vy Baron will offset losses from the drop in Vy Baron's long position.| Siit Large vs. Siit Dynamic Asset | Siit Large vs. Columbia Large Cap | Siit Large vs. Janus Growth And | Siit Large vs. Nationwide Sp 500 |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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