Correlation Between Siit Large and Aristotle Funds
Can any of the company-specific risk be diversified away by investing in both Siit Large and Aristotle Funds 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 Large and Aristotle Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Large Cap and Aristotle Funds Series, you can compare the effects of market volatilities on Siit Large and Aristotle Funds 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 Large with a short position of Aristotle Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Aristotle Funds.
Diversification Opportunities for Siit Large and Aristotle Funds
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Aristotle is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Aristotle Funds Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Funds Series and Siit Large 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 Large Cap are associated (or correlated) with Aristotle Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Funds Series has no effect on the direction of Siit Large i.e., Siit Large and Aristotle Funds go up and down completely randomly.
Pair Corralation between Siit Large and Aristotle Funds
Assuming the 90 days horizon Siit Large Cap is expected to generate 0.6 times more return on investment than Aristotle Funds. However, Siit Large Cap is 1.68 times less risky than Aristotle Funds. It trades about 0.03 of its potential returns per unit of risk. Aristotle Funds Series is currently generating about -0.01 per unit of risk. If you would invest 1,297 in Siit Large Cap on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Siit Large Cap or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Siit Large Cap vs. Aristotle Funds Series
Performance |
| Timeline |
| Siit Large Cap |
| Aristotle Funds Series |
Siit Large and Aristotle Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Aristotle Funds
The main advantage of trading using opposite Siit Large and Aristotle Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Aristotle Funds 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 Aristotle Funds will offset losses from the drop in Aristotle Funds' long position.| Siit Large vs. Siit Screened World | Siit Large vs. Siit Opportunistic Income | Siit Large vs. Siit Large Cap | Siit Large vs. Siit Limited Duration |
| Aristotle Funds vs. Qs Large Cap | Aristotle Funds vs. Rbc Microcap Value | Aristotle Funds vs. Western Asset Municipal | Aristotle Funds vs. Arrow Managed Futures |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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