Correlation Between Siit Core and Siit Us
Can any of the company-specific risk be diversified away by investing in both Siit Core and Siit Us 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 Siit Us 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 Siit Managed Volatility, you can compare the effects of market volatilities on Siit Core and Siit Us 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 Siit Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Core and Siit Us.
Diversification Opportunities for Siit Core and Siit Us
Excellent diversification
The 3 months correlation between Siit and Siit is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Siit E Fixed and Siit Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Managed Volatility 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 Siit Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Managed Volatility has no effect on the direction of Siit Core i.e., Siit Core and Siit Us go up and down completely randomly.
Pair Corralation between Siit Core and Siit Us
Assuming the 90 days horizon Siit Core is expected to generate 8.39 times less return on investment than Siit Us. But when comparing it to its historical volatility, Siit E Fixed is 1.95 times less risky than Siit Us. It trades about 0.07 of its potential returns per unit of risk. Siit Managed Volatility is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,239 in Siit Managed Volatility on September 5, 2024 and sell it today you would earn a total of 61.00 from holding Siit Managed Volatility or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit E Fixed vs. Siit Managed Volatility
Performance |
| Timeline |
| Siit E Fixed |
| Siit Managed Volatility |
Siit Core and Siit Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Core and Siit Us
The main advantage of trading using opposite Siit Core and Siit Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Core position performs unexpectedly, Siit Us 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 Us will offset losses from the drop in Siit Us' long position.| Siit Core vs. Fidelity Sai Convertible | Siit Core vs. Lord Abbett Convertible | Siit Core vs. Virtus Convertible | Siit Core vs. Putnam Convertible Incm Gwth |
| Siit Us vs. Simt Managed Volatility | Siit Us vs. Hartford Schroders Smallmid | Siit Us vs. Fam Value Fund | Siit Us vs. Hartford Schroders Smallmid |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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