Correlation Between Siit High and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Siit High and Emerging Markets 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 Emerging Markets 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 Emerging Markets Fund, you can compare the effects of market volatilities on Siit High and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Emerging Markets.
Diversification Opportunities for Siit High and Emerging Markets
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Emerging is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Emerging Markets Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of Siit High i.e., Siit High and Emerging Markets go up and down completely randomly.
Pair Corralation between Siit High and Emerging Markets
Assuming the 90 days horizon Siit High Yield is expected to generate 0.16 times more return on investment than Emerging Markets. However, Siit High Yield is 6.27 times less risky than Emerging Markets. It trades about 0.17 of its potential returns per unit of risk. Emerging Markets Fund is currently generating about -0.04 per unit of risk. If you would invest 651.00 in Siit High Yield on November 3, 2024 and sell it today you would earn a total of 67.00 from holding Siit High Yield or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Emerging Markets Fund
Performance |
| Timeline |
| Siit High Yield |
| Emerging Markets |
Siit High and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Emerging Markets
The main advantage of trading using opposite Siit High and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Siit High vs. Tiaa Cref Real Estate | Siit High vs. Fidelity Real Estate | Siit High vs. Rreef Property Trust | Siit High vs. Vanguard Reit Index |
| Emerging Markets vs. Allianzgi Health Sciences | Emerging Markets vs. Highland Longshort Healthcare | Emerging Markets vs. The Hartford Healthcare | Emerging Markets vs. Hartford Healthcare Hls |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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