Correlation Between Sit Mid and Sit Balanced
Can any of the company-specific risk be diversified away by investing in both Sit Mid and Sit Balanced 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 Mid and Sit Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Mid Cap and Sit Balanced Fund, you can compare the effects of market volatilities on Sit Mid and Sit Balanced 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 Mid with a short position of Sit Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Mid and Sit Balanced.
Diversification Opportunities for Sit Mid and Sit Balanced
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SIT and SIT is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Sit Mid Cap and Sit Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Balanced and Sit Mid 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 Mid Cap are associated (or correlated) with Sit Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Balanced has no effect on the direction of Sit Mid i.e., Sit Mid and Sit Balanced go up and down completely randomly.
Pair Corralation between Sit Mid and Sit Balanced
Assuming the 90 days horizon Sit Mid Cap is expected to generate 1.57 times more return on investment than Sit Balanced. However, Sit Mid is 1.57 times more volatile than Sit Balanced Fund. It trades about 0.09 of its potential returns per unit of risk. Sit Balanced Fund is currently generating about 0.13 per unit of risk. If you would invest 1,845 in Sit Mid Cap on August 30, 2024 and sell it today you would earn a total of 706.00 from holding Sit Mid Cap or generate 38.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Mid Cap vs. Sit Balanced Fund
Performance |
| Timeline |
| Sit Mid Cap |
| Sit Balanced |
Sit Mid and Sit Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Mid and Sit Balanced
The main advantage of trading using opposite Sit Mid and Sit Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Mid position performs unexpectedly, Sit Balanced 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 Balanced will offset losses from the drop in Sit Balanced's long position.| Sit Mid vs. Live Oak Health | Sit Mid vs. Hartford Healthcare Hls | Sit Mid vs. Highland Longshort Healthcare | Sit Mid vs. Alphacentric Lifesci Healthcare |
| Sit Balanced vs. Value Line Asset | Sit Balanced vs. Sit Large Cap | Sit Balanced vs. Sit Small Cap | Sit Balanced vs. Plumb Balanced Fund |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |