Correlation Between Summit Global and Siit Dynamic
Can any of the company-specific risk be diversified away by investing in both Summit Global and Siit Dynamic 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 Summit Global and Siit Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Global Investments and Siit Dynamic Asset, you can compare the effects of market volatilities on Summit Global and Siit Dynamic 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 Summit Global with a short position of Siit Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Siit Dynamic.
Diversification Opportunities for Summit Global and Siit Dynamic
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Summit and Siit is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments and Siit Dynamic Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Dynamic Asset and Summit Global 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 Summit Global Investments are associated (or correlated) with Siit Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Dynamic Asset has no effect on the direction of Summit Global i.e., Summit Global and Siit Dynamic go up and down completely randomly.
Pair Corralation between Summit Global and Siit Dynamic
If you would invest 2,313 in Siit Dynamic Asset on September 3, 2024 and sell it today you would earn a total of 142.00 from holding Siit Dynamic Asset or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Summit Global Investments vs. Siit Dynamic Asset
Performance |
| Timeline |
| Summit Global Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Siit Dynamic Asset |
Summit Global and Siit Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Global and Siit Dynamic
The main advantage of trading using opposite Summit Global and Siit Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Global position performs unexpectedly, Siit Dynamic 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 Dynamic will offset losses from the drop in Siit Dynamic's long position.| Summit Global vs. 1919 Financial Services | Summit Global vs. Davis Financial Fund | Summit Global vs. Royce Global Financial | Summit Global vs. Goldman Sachs Financial |
| Siit Dynamic vs. Columbia Large Cap | Siit Dynamic vs. Siit Large Cap | Siit Dynamic vs. Janus Growth And | Siit Dynamic vs. Siit Sp 500 |
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.
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