Correlation Between Siit High and Siit Large
Can any of the company-specific risk be diversified away by investing in both Siit High and Siit Large 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 Siit Large 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 Siit Large Cap, you can compare the effects of market volatilities on Siit High and Siit Large 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 Siit Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Siit Large.
Diversification Opportunities for Siit High and Siit Large
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Siit is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Siit Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Large Cap 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 Siit Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Large Cap has no effect on the direction of Siit High i.e., Siit High and Siit Large go up and down completely randomly.
Pair Corralation between Siit High and Siit Large
Assuming the 90 days horizon Siit High is expected to generate 2.5 times less return on investment than Siit Large. But when comparing it to its historical volatility, Siit High Yield is 2.24 times less risky than Siit Large. It trades about 0.12 of its potential returns per unit of risk. Siit Large Cap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 913.00 in Siit Large Cap on September 2, 2024 and sell it today you would earn a total of 393.00 from holding Siit Large Cap or generate 43.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Siit Large Cap
Performance |
| Timeline |
| Siit High Yield |
| Siit Large Cap |
Siit High and Siit Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Siit Large
The main advantage of trading using opposite Siit High and Siit Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Siit Large 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 Siit Large will offset losses from the drop in Siit Large'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 |
| Siit Large vs. Siit Dynamic Asset | Siit Large vs. Columbia Large Cap | Siit Large vs. Janus Growth And | Siit Large vs. Nationwide Sp 500 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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