Correlation Between Siit High and Capital Appreciation
Can any of the company-specific risk be diversified away by investing in both Siit High and Capital Appreciation 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 Capital Appreciation 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 Capital Appreciation Fund, you can compare the effects of market volatilities on Siit High and Capital Appreciation 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 Capital Appreciation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Capital Appreciation.
Diversification Opportunities for Siit High and Capital Appreciation
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Capital is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Capital Appreciation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Appreciation 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 Capital Appreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Appreciation has no effect on the direction of Siit High i.e., Siit High and Capital Appreciation go up and down completely randomly.
Pair Corralation between Siit High and Capital Appreciation
Assuming the 90 days horizon Siit High Yield is expected to generate 0.18 times more return on investment than Capital Appreciation. However, Siit High Yield is 5.67 times less risky than Capital Appreciation. It trades about 0.17 of its potential returns per unit of risk. Capital Appreciation Fund is currently generating about -0.14 per unit of risk. If you would invest 713.00 in Siit High Yield on December 1, 2024 and sell it today you would earn a total of 5.00 from holding Siit High Yield or generate 0.7% 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. Capital Appreciation Fund
Performance |
| Timeline |
| Siit High Yield |
| Capital Appreciation |
Siit High and Capital Appreciation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Capital Appreciation
The main advantage of trading using opposite Siit High and Capital Appreciation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Capital Appreciation 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 Capital Appreciation will offset losses from the drop in Capital Appreciation's long position.| Siit High vs. Texton Property | Siit High vs. Prudential Real Estate | Siit High vs. Vanguard Reit Index | Siit High vs. Vy Clarion Real |
| Capital Appreciation vs. Regional Bank Fund | Capital Appreciation vs. Regional Bank Fund | Capital Appreciation vs. Multimanager Lifestyle Moderate | Capital Appreciation vs. Multimanager Lifestyle Balanced |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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