Correlation Between Siit Large and The Gold
Can any of the company-specific risk be diversified away by investing in both Siit Large and The Gold 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 The Gold 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 The Gold Bullion, you can compare the effects of market volatilities on Siit Large and The Gold 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 The Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and The Gold.
Diversification Opportunities for Siit Large and The Gold
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siit and The is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and The Gold Bullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bullion 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 The Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bullion has no effect on the direction of Siit Large i.e., Siit Large and The Gold go up and down completely randomly.
Pair Corralation between Siit Large and The Gold
Assuming the 90 days horizon Siit Large Cap is expected to generate 0.58 times more return on investment than The Gold. However, Siit Large Cap is 1.72 times less risky than The Gold. It trades about 0.21 of its potential returns per unit of risk. The Gold Bullion is currently generating about -0.15 per unit of risk. If you would invest 1,251 in Siit Large Cap on August 28, 2024 and sell it today you would earn a total of 46.00 from holding Siit Large Cap or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. The Gold Bullion
Performance |
| Timeline |
| Siit Large Cap |
| Gold Bullion |
Siit Large and The Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and The Gold
The main advantage of trading using opposite Siit Large and The Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, The Gold 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 The Gold will offset losses from the drop in The Gold's long position.| Siit Large vs. The Gold Bullion | Siit Large vs. Invesco Gold Special | Siit Large vs. Fidelity Advisor Gold | Siit Large vs. Wells Fargo Advantage |
| The Gold vs. Aquagold International | The Gold vs. Morningstar Unconstrained Allocation | The Gold vs. Thrivent High Yield | The Gold vs. Via Renewables |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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