Correlation Between Siit Emerging and Western Assets
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Western Assets 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 Emerging and Western Assets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Western Assets Emerging, you can compare the effects of market volatilities on Siit Emerging and Western Assets 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 Emerging with a short position of Western Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Western Assets.
Diversification Opportunities for Siit Emerging and Western Assets
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siit and Western is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Western Assets Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Assets Emerging and Siit Emerging 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 Emerging Markets are associated (or correlated) with Western Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Assets Emerging has no effect on the direction of Siit Emerging i.e., Siit Emerging and Western Assets go up and down completely randomly.
Pair Corralation between Siit Emerging and Western Assets
Assuming the 90 days horizon Siit Emerging Markets is expected to generate 1.11 times more return on investment than Western Assets. However, Siit Emerging is 1.11 times more volatile than Western Assets Emerging. It trades about 0.4 of its potential returns per unit of risk. Western Assets Emerging is currently generating about 0.11 per unit of risk. If you would invest 828.00 in Siit Emerging Markets on November 2, 2024 and sell it today you would earn a total of 23.00 from holding Siit Emerging Markets or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Western Assets Emerging
Performance |
| Timeline |
| Siit Emerging Markets |
| Western Assets Emerging |
Siit Emerging and Western Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Western Assets
The main advantage of trading using opposite Siit Emerging and Western Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Western Assets 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 Western Assets will offset losses from the drop in Western Assets' long position.| Siit Emerging vs. Fidelity New Markets | Siit Emerging vs. Rbc Emerging Markets | Siit Emerging vs. Locorr Market Trend | Siit Emerging vs. Calvert Developed Market |
| Western Assets vs. Guidemark Large Cap | Western Assets vs. Americafirst Large Cap | Western Assets vs. Qs Large Cap | Western Assets vs. Calvert Large Cap |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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