Correlation Between Siit High and Real Return
Can any of the company-specific risk be diversified away by investing in both Siit High and Real Return 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 Real Return 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 Real Return Fund, you can compare the effects of market volatilities on Siit High and Real Return 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 Real Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Real Return.
Diversification Opportunities for Siit High and Real Return
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siit and Real is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Real Return Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Return Fund 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 Real Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Return Fund has no effect on the direction of Siit High i.e., Siit High and Real Return go up and down completely randomly.
Pair Corralation between Siit High and Real Return
Assuming the 90 days horizon Siit High Yield is expected to generate 0.72 times more return on investment than Real Return. However, Siit High Yield is 1.39 times less risky than Real Return. It trades about 0.23 of its potential returns per unit of risk. Real Return Fund is currently generating about 0.05 per unit of risk. If you would invest 713.00 in Siit High Yield on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Siit High Yield or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Real Return Fund
Performance |
| Timeline |
| Siit High Yield |
| Real Return Fund |
Siit High and Real Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Real Return
The main advantage of trading using opposite Siit High and Real Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Real Return 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 Real Return will offset losses from the drop in Real Return'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 |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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