Correlation Between Siit Real and Equity Growth
Can any of the company-specific risk be diversified away by investing in both Siit Real and Equity Growth 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 Real and Equity Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Real Return and Equity Growth Fund, you can compare the effects of market volatilities on Siit Real and Equity Growth 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 Real with a short position of Equity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Real and Equity Growth.
Diversification Opportunities for Siit Real and Equity Growth
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siit and Equity is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Siit Real Return and Equity Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Growth and Siit Real 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 Real Return are associated (or correlated) with Equity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Growth has no effect on the direction of Siit Real i.e., Siit Real and Equity Growth go up and down completely randomly.
Pair Corralation between Siit Real and Equity Growth
Assuming the 90 days horizon Siit Real is expected to generate 112.92 times less return on investment than Equity Growth. But when comparing it to its historical volatility, Siit Real Return is 236.76 times less risky than Equity Growth. It trades about 0.09 of its potential returns per unit of risk. Equity Growth Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,228 in Equity Growth Fund on August 27, 2024 and sell it today you would earn a total of 1,188 from holding Equity Growth Fund or generate 53.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Real Return vs. Equity Growth Fund
Performance |
| Timeline |
| Siit Real Return |
| Equity Growth |
Siit Real and Equity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Real and Equity Growth
The main advantage of trading using opposite Siit Real and Equity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Real position performs unexpectedly, Equity Growth 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 Equity Growth will offset losses from the drop in Equity Growth's long position.| Siit Real vs. Nuveen Winslow Large Cap | Siit Real vs. Qs Large Cap | Siit Real vs. Rational Strategic Allocation | Siit Real vs. Old Westbury Large |
| Equity Growth vs. Mid Cap Value | Equity Growth vs. Income Growth Fund | Equity Growth vs. Diversified Bond Fund | Equity Growth vs. Emerging Markets 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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