Correlation Between Siit High and Meridian Growth
Can any of the company-specific risk be diversified away by investing in both Siit High and Meridian Growth 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 Meridian Growth 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 Meridian Growth Fund, you can compare the effects of market volatilities on Siit High and Meridian Growth 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 Meridian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Meridian Growth.
Diversification Opportunities for Siit High and Meridian Growth
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Meridian is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Meridian Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Growth 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 Meridian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Growth has no effect on the direction of Siit High i.e., Siit High and Meridian Growth go up and down completely randomly.
Pair Corralation between Siit High and Meridian Growth
Assuming the 90 days horizon Siit High Yield is expected to generate 0.32 times more return on investment than Meridian Growth. However, Siit High Yield is 3.13 times less risky than Meridian Growth. It trades about 0.12 of its potential returns per unit of risk. Meridian Growth Fund is currently generating about 0.03 per unit of risk. If you would invest 626.00 in Siit High Yield on September 12, 2024 and sell it today you would earn a total of 94.00 from holding Siit High Yield or generate 15.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Siit High Yield vs. Meridian Growth Fund
Performance |
| Timeline |
| Siit High Yield |
| Meridian Growth |
Siit High and Meridian Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Meridian Growth
The main advantage of trading using opposite Siit High and Meridian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Meridian Growth 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 Meridian Growth will offset losses from the drop in Meridian Growth's long position.| Siit High vs. John Hancock Financial | Siit High vs. Davis Financial Fund | Siit High vs. Goldman Sachs Financial | Siit High vs. Fidelity Advisor Financial |
| Meridian Growth vs. Europac Gold Fund | Meridian Growth vs. Vy Goldman Sachs | Meridian Growth vs. International Investors Gold | Meridian Growth vs. Sprott Gold Equity |
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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