Correlation Between Sit Esg and California High-yield
Can any of the company-specific risk be diversified away by investing in both Sit Esg and California High-yield 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 Esg and California High-yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Esg Growth and California High Yield Municipal, you can compare the effects of market volatilities on Sit Esg and California High-yield 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 Esg with a short position of California High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Esg and California High-yield.
Diversification Opportunities for Sit Esg and California High-yield
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sit and California is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sit Esg Growth and California High Yield Municipa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California High Yield and Sit Esg 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 Esg Growth are associated (or correlated) with California High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California High Yield has no effect on the direction of Sit Esg i.e., Sit Esg and California High-yield go up and down completely randomly.
Pair Corralation between Sit Esg and California High-yield
Assuming the 90 days horizon Sit Esg Growth is expected to generate 3.56 times more return on investment than California High-yield. However, Sit Esg is 3.56 times more volatile than California High Yield Municipal. It trades about 0.1 of its potential returns per unit of risk. California High Yield Municipal is currently generating about 0.15 per unit of risk. If you would invest 2,044 in Sit Esg Growth on September 1, 2024 and sell it today you would earn a total of 214.00 from holding Sit Esg Growth or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sit Esg Growth vs. California High Yield Municipa
Performance |
| Timeline |
| Sit Esg Growth |
| California High Yield |
Sit Esg and California High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Esg and California High-yield
The main advantage of trading using opposite Sit Esg and California High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Esg position performs unexpectedly, California High-yield 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 California High-yield will offset losses from the drop in California High-yield's long position.| Sit Esg vs. Ab Bond Inflation | Sit Esg vs. Ab Bond Inflation | Sit Esg vs. Nationwide Inflation Protected Securities | Sit Esg vs. Lord Abbett Inflation |
| California High-yield vs. Equity Growth Fund | California High-yield vs. Income Growth Fund | California High-yield vs. Diversified Bond Fund | California High-yield vs. Emerging Markets Fund |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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