Correlation Between Siit Global and Aquila Three
Can any of the company-specific risk be diversified away by investing in both Siit Global and Aquila Three 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 Global and Aquila Three into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Global Managed and Aquila Three Peaks, you can compare the effects of market volatilities on Siit Global and Aquila Three 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 Global with a short position of Aquila Three. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Aquila Three.
Diversification Opportunities for Siit Global and Aquila Three
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Aquila is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Aquila Three Peaks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquila Three Peaks and Siit Global 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 Global Managed are associated (or correlated) with Aquila Three. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquila Three Peaks has no effect on the direction of Siit Global i.e., Siit Global and Aquila Three go up and down completely randomly.
Pair Corralation between Siit Global and Aquila Three
Assuming the 90 days horizon Siit Global Managed is expected to generate 0.07 times more return on investment than Aquila Three. However, Siit Global Managed is 13.61 times less risky than Aquila Three. It trades about 0.06 of its potential returns per unit of risk. Aquila Three Peaks is currently generating about -0.21 per unit of risk. If you would invest 1,275 in Siit Global Managed on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Siit Global Managed or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Global Managed vs. Aquila Three Peaks
Performance |
| Timeline |
| Siit Global Managed |
| Aquila Three Peaks |
Siit Global and Aquila Three Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Global and Aquila Three
The main advantage of trading using opposite Siit Global and Aquila Three positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Global position performs unexpectedly, Aquila Three 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 Aquila Three will offset losses from the drop in Aquila Three's long position.| Siit Global vs. Origin Emerging Markets | Siit Global vs. Transamerica Emerging Markets | Siit Global vs. T Rowe Price | Siit Global vs. Kinetics Market Opportunities |
| Aquila Three vs. Kinetics Global Fund | Aquila Three vs. Scharf Global Opportunity | Aquila Three vs. Siit Global Managed | Aquila Three vs. Investec Global Franchise |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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