Correlation Between Siit Global and Bright Rock
Can any of the company-specific risk be diversified away by investing in both Siit Global and Bright Rock 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 Bright Rock 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 Bright Rock Mid, you can compare the effects of market volatilities on Siit Global and Bright Rock 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 Bright Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Bright Rock.
Diversification Opportunities for Siit Global and Bright Rock
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Bright is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Bright Rock Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Rock Mid 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 Bright Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Rock Mid has no effect on the direction of Siit Global i.e., Siit Global and Bright Rock go up and down completely randomly.
Pair Corralation between Siit Global and Bright Rock
Assuming the 90 days horizon Siit Global is expected to generate 1.42 times less return on investment than Bright Rock. But when comparing it to its historical volatility, Siit Global Managed is 1.68 times less risky than Bright Rock. It trades about 0.09 of its potential returns per unit of risk. Bright Rock Mid is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,016 in Bright Rock Mid on September 13, 2024 and sell it today you would earn a total of 719.00 from holding Bright Rock Mid or generate 35.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Siit Global Managed vs. Bright Rock Mid
Performance |
| Timeline |
| Siit Global Managed |
| Bright Rock Mid |
Siit Global and Bright Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Global and Bright Rock
The main advantage of trading using opposite Siit Global and Bright Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Global position performs unexpectedly, Bright Rock 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 Bright Rock will offset losses from the drop in Bright Rock'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 |
| Bright Rock vs. Artisan Global Unconstrained | Bright Rock vs. Siit Global Managed | Bright Rock vs. Commonwealth Global Fund | Bright Rock vs. Morningstar Global Income |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |