Correlation Between Siit High and Deutsche Gnma
Can any of the company-specific risk be diversified away by investing in both Siit High and Deutsche Gnma 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 Deutsche Gnma 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 Deutsche Gnma Fund, you can compare the effects of market volatilities on Siit High and Deutsche Gnma 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 Deutsche Gnma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Deutsche Gnma.
Diversification Opportunities for Siit High and Deutsche Gnma
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siit and Deutsche is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Deutsche Gnma Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Gnma 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 Deutsche Gnma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Gnma has no effect on the direction of Siit High i.e., Siit High and Deutsche Gnma go up and down completely randomly.
Pair Corralation between Siit High and Deutsche Gnma
Assuming the 90 days horizon Siit High Yield is expected to generate 0.62 times more return on investment than Deutsche Gnma. However, Siit High Yield is 1.62 times less risky than Deutsche Gnma. It trades about 0.32 of its potential returns per unit of risk. Deutsche Gnma Fund is currently generating about 0.16 per unit of risk. If you would invest 711.00 in Siit High Yield on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Siit High Yield or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Deutsche Gnma Fund
Performance |
| Timeline |
| Siit High Yield |
| Deutsche Gnma |
Siit High and Deutsche Gnma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Deutsche Gnma
The main advantage of trading using opposite Siit High and Deutsche Gnma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Deutsche Gnma 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 Deutsche Gnma will offset losses from the drop in Deutsche Gnma's long position.| Siit High vs. Calvert High Yield | Siit High vs. Metropolitan West High | Siit High vs. Artisan High Income | Siit High vs. Pace High Yield |
| Deutsche Gnma vs. Siit High Yield | Deutsche Gnma vs. Franklin High Income | Deutsche Gnma vs. Ab Global Risk | Deutsche Gnma vs. Ppm High Yield |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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