Correlation Between Siit Large and Equity Growth
Can any of the company-specific risk be diversified away by investing in both Siit Large and Equity Growth 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 Equity Growth 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 Equity Growth Strategy, you can compare the effects of market volatilities on Siit Large and Equity Growth 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 Equity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Equity Growth.
Diversification Opportunities for Siit Large and Equity Growth
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SIIT and Equity is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Equity Growth Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Growth Strategy 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 Equity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Growth Strategy has no effect on the direction of Siit Large i.e., Siit Large and Equity Growth go up and down completely randomly.
Pair Corralation between Siit Large and Equity Growth
Assuming the 90 days horizon Siit Large Cap is expected to generate 1.11 times more return on investment than Equity Growth. However, Siit Large is 1.11 times more volatile than Equity Growth Strategy. It trades about 0.14 of its potential returns per unit of risk. Equity Growth Strategy is currently generating about 0.1 per unit of risk. If you would invest 1,144 in Siit Large Cap on September 3, 2024 and sell it today you would earn a total of 162.00 from holding Siit Large Cap or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Equity Growth Strategy
Performance |
| Timeline |
| Siit Large Cap |
| Equity Growth Strategy |
Siit Large and Equity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Equity Growth
The main advantage of trading using opposite Siit Large and Equity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Equity Growth 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 Equity Growth will offset losses from the drop in Equity Growth's long position.| Siit Large vs. Nuveen High Income | Siit Large vs. Ab Global Risk | Siit Large vs. Ab Global Risk | Siit Large vs. Metropolitan West High |
| Equity Growth vs. Fidelity Series 1000 | Equity Growth vs. Qs Large Cap | Equity Growth vs. Siit Large Cap | Equity Growth vs. Jhancock Disciplined Value |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |