Correlation Between Siit Large and Stet Intermediate
Can any of the company-specific risk be diversified away by investing in both Siit Large and Stet Intermediate 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 Stet Intermediate 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 Stet Intermediate Term, you can compare the effects of market volatilities on Siit Large and Stet Intermediate 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 Stet Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Stet Intermediate.
Diversification Opportunities for Siit Large and Stet Intermediate
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Stet is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Stet Intermediate Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stet Intermediate Term 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 Stet Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stet Intermediate Term has no effect on the direction of Siit Large i.e., Siit Large and Stet Intermediate go up and down completely randomly.
Pair Corralation between Siit Large and Stet Intermediate
Assuming the 90 days horizon Siit Large Cap is expected to generate 3.1 times more return on investment than Stet Intermediate. However, Siit Large is 3.1 times more volatile than Stet Intermediate Term. It trades about 0.24 of its potential returns per unit of risk. Stet Intermediate Term is currently generating about 0.17 per unit of risk. If you would invest 1,251 in Siit Large Cap on August 29, 2024 and sell it today you would earn a total of 53.00 from holding Siit Large Cap or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Stet Intermediate Term
Performance |
| Timeline |
| Siit Large Cap |
| Stet Intermediate Term |
Siit Large and Stet Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Stet Intermediate
The main advantage of trading using opposite Siit Large and Stet Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Stet Intermediate 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 Stet Intermediate will offset losses from the drop in Stet Intermediate's long position.| Siit Large vs. Aqr Long Short Equity | Siit Large vs. Angel Oak Ultrashort | Siit Large vs. Rbc Ultra Short Fixed | Siit Large vs. Maryland Short Term Tax Free |
| Stet Intermediate vs. Sit International Equity | Stet Intermediate vs. Intermediate Taxamt Free Fund | Stet Intermediate vs. Goldman Sachs Short | Stet Intermediate vs. Simt High Yield |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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