Correlation Between Spirit Of and Sit Emerging
Can any of the company-specific risk be diversified away by investing in both Spirit Of and Sit 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 Spirit Of and Sit Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spirit Of America and Sit Emerging Markets, you can compare the effects of market volatilities on Spirit Of and Sit 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 Spirit Of with a short position of Sit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spirit Of and Sit Emerging.
Diversification Opportunities for Spirit Of and Sit Emerging
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Spirit and Sit is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Spirit Of America and Sit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Emerging Markets and Spirit Of 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 Spirit Of America are associated (or correlated) with Sit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Emerging Markets has no effect on the direction of Spirit Of i.e., Spirit Of and Sit Emerging go up and down completely randomly.
Pair Corralation between Spirit Of and Sit Emerging
Assuming the 90 days horizon Spirit Of America is expected to under-perform the Sit Emerging. In addition to that, Spirit Of is 6.22 times more volatile than Sit Emerging Markets. It trades about -0.16 of its total potential returns per unit of risk. Sit Emerging Markets is currently generating about 0.12 per unit of volatility. If you would invest 878.00 in Sit Emerging Markets on December 16, 2024 and sell it today you would earn a total of 5.00 from holding Sit Emerging Markets or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spirit Of America vs. Sit Emerging Markets
Performance |
| Timeline |
| Spirit Of America |
| Sit Emerging Markets |
Spirit Of and Sit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spirit Of and Sit Emerging
The main advantage of trading using opposite Spirit Of and Sit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spirit Of position performs unexpectedly, Sit 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 Sit Emerging will offset losses from the drop in Sit Emerging's long position.| Spirit Of vs. Wells Fargo Advantage | ||
| Spirit Of vs. Precious Metals And | ||
| Spirit Of vs. World Precious Minerals | ||
| Spirit Of vs. Goldman Sachs International |
| Sit Emerging vs. Absolute Convertible Arbitrage | ||
| Sit Emerging vs. Lord Abbett Vertible | ||
| Sit Emerging vs. Calamos Dynamic Convertible | ||
| Sit Emerging vs. Fidelity Vertible Securities |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |
Recommendations on macroaxis.com are based on what is currently trending. Macroaxis LLC is not a registered investment advisor or broker/dealer.
The information on the site should be used for informational purposes only and is not investment advice.
more