Correlation Between Siit High and Abrdn Short
Can any of the company-specific risk be diversified away by investing in both Siit High and Abrdn Short 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 High and Abrdn Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Abrdn Short Duration, you can compare the effects of market volatilities on Siit High and Abrdn Short 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 High with a short position of Abrdn Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Abrdn Short.
Diversification Opportunities for Siit High and Abrdn Short
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Abrdn is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Abrdn Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Short Duration and Siit High 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 High Yield are associated (or correlated) with Abrdn Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Short Duration has no effect on the direction of Siit High i.e., Siit High and Abrdn Short go up and down completely randomly.
Pair Corralation between Siit High and Abrdn Short
Assuming the 90 days horizon Siit High Yield is expected to generate 2.38 times more return on investment than Abrdn Short. However, Siit High is 2.38 times more volatile than Abrdn Short Duration. It trades about 0.09 of its potential returns per unit of risk. Abrdn Short Duration is currently generating about 0.06 per unit of risk. If you would invest 617.00 in Siit High Yield on August 30, 2024 and sell it today you would earn a total of 101.00 from holding Siit High Yield or generate 16.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Abrdn Short Duration
Performance |
| Timeline |
| Siit High Yield |
| Abrdn Short Duration |
Siit High and Abrdn Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Abrdn Short
The main advantage of trading using opposite Siit High and Abrdn Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Abrdn Short 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 Abrdn Short will offset losses from the drop in Abrdn Short's long position.| Siit High vs. Prudential High Yield | Siit High vs. HUMANA INC | Siit High vs. Aquagold International | Siit High vs. Barloworld Ltd ADR |
| Abrdn Short vs. Siit High Yield | Abrdn Short vs. Morningstar Aggressive Growth | Abrdn Short vs. Western Asset High | Abrdn Short vs. Needham Aggressive Growth |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |