Correlation Between Sit Emerging and Siit High
Can any of the company-specific risk be diversified away by investing in both Sit Emerging and Siit High 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 Emerging and Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Emerging Markets and Siit High Yield, you can compare the effects of market volatilities on Sit Emerging and Siit High 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 Emerging with a short position of Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Emerging and Siit High.
Diversification Opportunities for Sit Emerging and Siit High
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sit and Siit is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sit Emerging Markets and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Sit 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 Sit Emerging Markets are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Sit Emerging i.e., Sit Emerging and Siit High go up and down completely randomly.
Pair Corralation between Sit Emerging and Siit High
Assuming the 90 days horizon Sit Emerging Markets is expected to under-perform the Siit High. In addition to that, Sit Emerging is 4.1 times more volatile than Siit High Yield. It trades about -0.15 of its total potential returns per unit of risk. Siit High Yield is currently generating about 0.17 per unit of volatility. If you would invest 713.00 in Siit High Yield on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Siit High Yield or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Emerging Markets vs. Siit High Yield
Performance |
| Timeline |
| Sit Emerging Markets |
| Siit High Yield |
Sit Emerging and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Emerging and Siit High
The main advantage of trading using opposite Sit Emerging and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Emerging position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Sit Emerging vs. Pear Tree Polaris | Sit Emerging vs. Artisan High Income | Sit Emerging vs. HUMANA INC | Sit Emerging vs. Aquagold International |
| Siit High vs. Vanguard High Yield Corporate | Siit High vs. Vanguard High Yield Porate | Siit High vs. Blackrock Hi Yld | Siit High vs. Blackrock 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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