Correlation Between Siit High and Global Technology
Can any of the company-specific risk be diversified away by investing in both Siit High and Global Technology 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 Global Technology 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 Global Technology Portfolio, you can compare the effects of market volatilities on Siit High and Global Technology 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 Global Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Global Technology.
Diversification Opportunities for Siit High and Global Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Global is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Global Technology Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Technology 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 Global Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Technology has no effect on the direction of Siit High i.e., Siit High and Global Technology go up and down completely randomly.
Pair Corralation between Siit High and Global Technology
Assuming the 90 days horizon Siit High Yield is expected to under-perform the Global Technology. But the mutual fund apears to be less risky and, when comparing its historical volatility, Siit High Yield is 8.76 times less risky than Global Technology. The mutual fund trades about -0.31 of its potential returns per unit of risk. The Global Technology Portfolio is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,182 in Global Technology Portfolio on October 10, 2024 and sell it today you would earn a total of 3.00 from holding Global Technology Portfolio or generate 0.14% 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. Global Technology Portfolio
Performance |
| Timeline |
| Siit High Yield |
| Global Technology |
Siit High and Global Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Global Technology
The main advantage of trading using opposite Siit High and Global Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Global Technology 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 Global Technology will offset losses from the drop in Global Technology's long position.| Siit High vs. Nasdaq 100 2x Strategy | Siit High vs. Balanced Strategy Fund | Siit High vs. Eagle Mlp Strategy | Siit High vs. Franklin Emerging Market |
| Global Technology vs. Small Pany Growth | Global Technology vs. Tax Managed Large Cap | Global Technology vs. Ab New York | Global Technology vs. Fmasx |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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