Correlation Between Commodities Strategy and Siit Emerging
Can any of the company-specific risk be diversified away by investing in both Commodities Strategy and Siit Emerging 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 Commodities Strategy and Siit Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commodities Strategy Fund and Siit Emerging Markets, you can compare the effects of market volatilities on Commodities Strategy and Siit Emerging 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 Commodities Strategy with a short position of Siit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commodities Strategy and Siit Emerging.
Diversification Opportunities for Commodities Strategy and Siit Emerging
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Commodities and Siit is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Commodities Strategy Fund and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets and Commodities Strategy 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 Commodities Strategy Fund are associated (or correlated) with Siit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Commodities Strategy i.e., Commodities Strategy and Siit Emerging go up and down completely randomly.
Pair Corralation between Commodities Strategy and Siit Emerging
Assuming the 90 days horizon Commodities Strategy Fund is expected to generate 2.5 times more return on investment than Siit Emerging. However, Commodities Strategy is 2.5 times more volatile than Siit Emerging Markets. It trades about 0.17 of its potential returns per unit of risk. Siit Emerging Markets is currently generating about 0.04 per unit of risk. If you would invest 2,890 in Commodities Strategy Fund on October 26, 2024 and sell it today you would earn a total of 258.00 from holding Commodities Strategy Fund or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commodities Strategy Fund vs. Siit Emerging Markets
Performance |
| Timeline |
| Commodities Strategy |
| Siit Emerging Markets |
Commodities Strategy and Siit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commodities Strategy and Siit Emerging
The main advantage of trading using opposite Commodities Strategy and Siit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commodities Strategy position performs unexpectedly, Siit Emerging 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 Emerging will offset losses from the drop in Siit Emerging's long position.| Commodities Strategy vs. Basic Materials Fund | Commodities Strategy vs. Energy Services Fund | Commodities Strategy vs. Energy Fund Investor | Commodities Strategy vs. Real Estate Fund |
| Siit Emerging vs. Jpmorgan Emerging Markets | Siit Emerging vs. Transamerica Emerging Markets | Siit Emerging vs. Growth Strategy Fund | Siit Emerging vs. Commodities Strategy 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |