Correlation Between Siit Core and Sdit Gnma
Can any of the company-specific risk be diversified away by investing in both Siit Core and Sdit Gnma 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 Core and Sdit Gnma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit E Fixed and Sdit Gnma Fund, you can compare the effects of market volatilities on Siit Core and Sdit Gnma 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 Core with a short position of Sdit Gnma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Core and Sdit Gnma.
Diversification Opportunities for Siit Core and Sdit Gnma
No risk reduction
The 3 months correlation between Siit and Sdit is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Siit E Fixed and Sdit Gnma Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sdit Gnma Fund and Siit Core 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 E Fixed are associated (or correlated) with Sdit Gnma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sdit Gnma Fund has no effect on the direction of Siit Core i.e., Siit Core and Sdit Gnma go up and down completely randomly.
Pair Corralation between Siit Core and Sdit Gnma
Assuming the 90 days horizon Siit E Fixed is expected to generate 1.17 times more return on investment than Sdit Gnma. However, Siit Core is 1.17 times more volatile than Sdit Gnma Fund. It trades about 0.09 of its potential returns per unit of risk. Sdit Gnma Fund is currently generating about 0.09 per unit of risk. If you would invest 854.00 in Siit E Fixed on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Siit E Fixed or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit E Fixed vs. Sdit Gnma Fund
Performance |
| Timeline |
| Siit E Fixed |
| Sdit Gnma Fund |
Siit Core and Sdit Gnma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Core and Sdit Gnma
The main advantage of trading using opposite Siit Core and Sdit Gnma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Core position performs unexpectedly, Sdit Gnma 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 Sdit Gnma will offset losses from the drop in Sdit Gnma's long position.| Siit Core vs. Federated Global Allocation | Siit Core vs. Morgan Stanley Global | Siit Core vs. Wisdomtree Siegel Global | Siit Core vs. Scharf Global Opportunity |
| Sdit Gnma vs. Simt Multi Asset Accumulation | Sdit Gnma vs. Saat Market Growth | Sdit Gnma vs. Simt Real Return | Sdit Gnma vs. Simt Small Cap |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |