Correlation Between Siit High and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Siit High and Mid Cap 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 Mid Cap 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 Mid Cap 15x Strategy, you can compare the effects of market volatilities on Siit High and Mid Cap 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 Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Mid Cap.
Diversification Opportunities for Siit High and Mid Cap
Poor diversification
The 3 months correlation between Siit and Mid is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Mid Cap 15x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap 15x 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 Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap 15x has no effect on the direction of Siit High i.e., Siit High and Mid Cap go up and down completely randomly.
Pair Corralation between Siit High and Mid Cap
Assuming the 90 days horizon Siit High Yield is expected to generate 0.1 times more return on investment than Mid Cap. However, Siit High Yield is 9.97 times less risky than Mid Cap. It trades about -0.31 of its potential returns per unit of risk. Mid Cap 15x Strategy is currently generating about -0.27 per unit of risk. If you would invest 718.00 in Siit High Yield on October 14, 2024 and sell it today you would lose (7.00) from holding Siit High Yield or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Mid Cap 15x Strategy
Performance |
| Timeline |
| Siit High Yield |
| Mid Cap 15x |
Siit High and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Mid Cap
The main advantage of trading using opposite Siit High and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap's long position.| Siit High vs. Touchstone Ultra Short | Siit High vs. Aqr Sustainable Long Short | Siit High vs. Siit Ultra Short | Siit High vs. Rbc Short Duration |
| Mid Cap vs. Morningstar Defensive Bond | Mid Cap vs. Multisector Bond Sma | Mid Cap vs. Siit High Yield | Mid Cap vs. Versatile Bond Portfolio |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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