Correlation Between Sit Esg and Sit Small
Can any of the company-specific risk be diversified away by investing in both Sit Esg and Sit Small 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 Sit Small 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 Sit Small Cap, you can compare the effects of market volatilities on Sit Esg and Sit Small 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 Sit Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Esg and Sit Small.
Diversification Opportunities for Sit Esg and Sit Small
Almost no diversification
The 3 months correlation between Sit and Sit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sit Esg Growth and Sit Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Small Cap 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 Sit Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Small Cap has no effect on the direction of Sit Esg i.e., Sit Esg and Sit Small go up and down completely randomly.
Pair Corralation between Sit Esg and Sit Small
Assuming the 90 days horizon Sit Esg is expected to generate 4.76 times less return on investment than Sit Small. But when comparing it to its historical volatility, Sit Esg Growth is 1.88 times less risky than Sit Small. It trades about 0.06 of its potential returns per unit of risk. Sit Small Cap is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,781 in Sit Small Cap on August 30, 2024 and sell it today you would earn a total of 83.00 from holding Sit Small Cap or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Esg Growth vs. Sit Small Cap
Performance |
| Timeline |
| Sit Esg Growth |
| Sit Small Cap |
Sit Esg and Sit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Esg and Sit Small
The main advantage of trading using opposite Sit Esg and Sit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Esg position performs unexpectedly, Sit Small 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 Sit Small will offset losses from the drop in Sit Small's long position.| Sit Esg vs. Bbh Intermediate Municipal | Sit Esg vs. T Rowe Price | Sit Esg vs. The Hartford Municipal | Sit Esg vs. Nebraska Municipal Fund |
| Sit Small vs. T Rowe Price | Sit Small vs. Ishares Municipal Bond | Sit Small vs. Nuveen Massachusetts Municipal | Sit Small vs. Nuveen Minnesota Municipal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |