Correlation Between Mid Cap and Siit High
Can any of the company-specific risk be diversified away by investing in both Mid Cap and Siit High 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 Mid Cap and Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap 15x Strategy and Siit High Yield, you can compare the effects of market volatilities on Mid Cap and Siit High 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 Mid Cap with a short position of Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Siit High.
Diversification Opportunities for Mid Cap and Siit High
Poor diversification
The 3 months correlation between Mid and Siit is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap 15x Strategy and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Mid Cap 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 Mid Cap 15x Strategy are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Mid Cap i.e., Mid Cap and Siit High go up and down completely randomly.
Pair Corralation between Mid Cap and Siit High
Assuming the 90 days horizon Mid Cap 15x Strategy is expected to under-perform the Siit High. In addition to that, Mid Cap is 10.61 times more volatile than Siit High Yield. It trades about -0.25 of its total potential returns per unit of risk. Siit High Yield is currently generating about -0.31 per unit of volatility. If you would invest 720.00 in Siit High Yield on October 11, 2024 and sell it today you would lose (7.00) from holding Siit High Yield or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mid Cap 15x Strategy vs. Siit High Yield
Performance |
| Timeline |
| Mid Cap 15x |
| Siit High Yield |
Mid Cap and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Siit High
The main advantage of trading using opposite Mid Cap and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap position performs unexpectedly, Siit High 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 High will offset losses from the drop in Siit High's long position.| Mid Cap vs. Virtus Multi Sector Short | Mid Cap vs. Touchstone Ultra Short | Mid Cap vs. Abr Enhanced Short | Mid Cap vs. Rbc Short Duration |
| Siit High vs. Oberweis Emerging Growth | Siit High vs. Mid Cap 15x Strategy | Siit High vs. Nasdaq 100 2x Strategy | Siit High vs. Nasdaq 100 2x Strategy |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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