Correlation Between Siit Multi and Large Cap
Can any of the company-specific risk be diversified away by investing in both Siit Multi and Large Cap 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 Multi and Large Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Multi Asset Real and Large Cap Growth Profund, you can compare the effects of market volatilities on Siit Multi and Large Cap 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 Multi with a short position of Large Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Multi and Large Cap.
Diversification Opportunities for Siit Multi and Large Cap
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Large is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Siit Multi Asset Real and Large Cap Growth Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Cap Growth and Siit Multi 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 Multi Asset Real are associated (or correlated) with Large Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Cap Growth has no effect on the direction of Siit Multi i.e., Siit Multi and Large Cap go up and down completely randomly.
Pair Corralation between Siit Multi and Large Cap
Assuming the 90 days horizon Siit Multi is expected to generate 8.11 times less return on investment than Large Cap. But when comparing it to its historical volatility, Siit Multi Asset Real is 4.31 times less risky than Large Cap. It trades about 0.06 of its potential returns per unit of risk. Large Cap Growth Profund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,361 in Large Cap Growth Profund on October 24, 2024 and sell it today you would earn a total of 294.00 from holding Large Cap Growth Profund or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Siit Multi Asset Real vs. Large Cap Growth Profund
Performance |
| Timeline |
| Siit Multi Asset |
| Large Cap Growth |
Siit Multi and Large Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Multi and Large Cap
The main advantage of trading using opposite Siit Multi and Large Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Multi position performs unexpectedly, Large Cap 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 Large Cap will offset losses from the drop in Large Cap's long position.| Siit Multi vs. Large Cap Growth Profund | Siit Multi vs. Qs Large Cap | Siit Multi vs. Fidelity Large Cap | Siit Multi vs. Qs Large Cap |
| Large Cap vs. Short Real Estate | Large Cap vs. Ultrashort Mid Cap Profund | Large Cap vs. Ultrashort Mid Cap Profund | Large Cap vs. Technology Ultrasector Profund |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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