Correlation Between Siit High and International Equity
Can any of the company-specific risk be diversified away by investing in both Siit High and International Equity 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 International Equity 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 International Equity Index, you can compare the effects of market volatilities on Siit High and International Equity 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 International Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and International Equity.
Diversification Opportunities for Siit High and International Equity
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siit and International is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and International Equity Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Equity 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 International Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Equity has no effect on the direction of Siit High i.e., Siit High and International Equity go up and down completely randomly.
Pair Corralation between Siit High and International Equity
Assuming the 90 days horizon Siit High is expected to generate 1.19 times less return on investment than International Equity. But when comparing it to its historical volatility, Siit High Yield is 2.58 times less risky than International Equity. It trades about 0.12 of its potential returns per unit of risk. International Equity Index is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,074 in International Equity Index on September 4, 2024 and sell it today you would earn a total of 119.00 from holding International Equity Index or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Siit High Yield vs. International Equity Index
Performance |
| Timeline |
| Siit High Yield |
| International Equity |
Siit High and International Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and International Equity
The main advantage of trading using opposite Siit High and International Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, International Equity 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 International Equity will offset losses from the drop in International Equity's long position.| Siit High vs. Simt Multi Asset Accumulation | Siit High vs. Saat Market Growth | Siit High vs. Simt Real Return | Siit High vs. Simt Small Cap |
| International Equity vs. Ab Global Risk | International Equity vs. Pioneer High Yield | International Equity vs. Siit High Yield | International Equity vs. Ab High Income |
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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