Correlation Between Sit Dividend and Boston Trust
Can any of the company-specific risk be diversified away by investing in both Sit Dividend and Boston Trust 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 Sit Dividend and Boston Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Dividend Growth and Boston Trust Midcap, you can compare the effects of market volatilities on Sit Dividend and Boston Trust 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 Sit Dividend with a short position of Boston Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Dividend and Boston Trust.
Diversification Opportunities for Sit Dividend and Boston Trust
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sit and Boston is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sit Dividend Growth and Boston Trust Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Trust Midcap and Sit Dividend 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 Sit Dividend Growth are associated (or correlated) with Boston Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Trust Midcap has no effect on the direction of Sit Dividend i.e., Sit Dividend and Boston Trust go up and down completely randomly.
Pair Corralation between Sit Dividend and Boston Trust
Assuming the 90 days horizon Sit Dividend is expected to generate 1.09 times less return on investment than Boston Trust. But when comparing it to its historical volatility, Sit Dividend Growth is 1.05 times less risky than Boston Trust. It trades about 0.14 of its potential returns per unit of risk. Boston Trust Midcap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,366 in Boston Trust Midcap on September 1, 2024 and sell it today you would earn a total of 333.00 from holding Boston Trust Midcap or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sit Dividend Growth vs. Boston Trust Midcap
Performance |
| Timeline |
| Sit Dividend Growth |
| Boston Trust Midcap |
Sit Dividend and Boston Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Dividend and Boston Trust
The main advantage of trading using opposite Sit Dividend and Boston Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Dividend position performs unexpectedly, Boston Trust 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 Boston Trust will offset losses from the drop in Boston Trust's long position.| Sit Dividend vs. Harbor Large Cap | Sit Dividend vs. Janus Growth And | Sit Dividend vs. Boston Trust Midcap | Sit Dividend vs. Sit U S |
| Boston Trust vs. Boston Trust Asset | Boston Trust vs. Virtus Kar Mid Cap | Boston Trust vs. Virtus Kar Mid Cap | Boston Trust vs. Boston Trust Small |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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