Correlation Between Siit High and Steward Funds
Can any of the company-specific risk be diversified away by investing in both Siit High and Steward Funds 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 Steward Funds 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 Steward Funds , you can compare the effects of market volatilities on Siit High and Steward Funds 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 Steward Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Steward Funds.
Diversification Opportunities for Siit High and Steward Funds
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Steward is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Steward Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Funds 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 Steward Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Funds has no effect on the direction of Siit High i.e., Siit High and Steward Funds go up and down completely randomly.
Pair Corralation between Siit High and Steward Funds
Assuming the 90 days horizon Siit High is expected to generate 11.24 times less return on investment than Steward Funds. But when comparing it to its historical volatility, Siit High Yield is 5.39 times less risky than Steward Funds. It trades about 0.13 of its potential returns per unit of risk. Steward Funds is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,054 in Steward Funds on August 29, 2024 and sell it today you would earn a total of 196.00 from holding Steward Funds or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Steward Funds
Performance |
| Timeline |
| Siit High Yield |
| Steward Funds |
Siit High and Steward Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Steward Funds
The main advantage of trading using opposite Siit High and Steward Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Steward Funds 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 Steward Funds will offset losses from the drop in Steward Funds' long position.| Siit High vs. Prudential High Yield | Siit High vs. HUMANA INC | Siit High vs. Aquagold International | Siit High vs. Barloworld Ltd ADR |
| Steward Funds vs. Goldman Sachs High | Steward Funds vs. Victory High Income | Steward Funds vs. Morningstar Aggressive Growth | Steward Funds vs. Siit High Yield |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |