Correlation Between Siit High and Government Securities
Can any of the company-specific risk be diversified away by investing in both Siit High and Government Securities 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 Government Securities 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 Government Securities Fund, you can compare the effects of market volatilities on Siit High and Government Securities 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 Government Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Government Securities.
Diversification Opportunities for Siit High and Government Securities
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siit and Government is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Government Securities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Government Securities 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 Government Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Government Securities has no effect on the direction of Siit High i.e., Siit High and Government Securities go up and down completely randomly.
Pair Corralation between Siit High and Government Securities
Assuming the 90 days horizon Siit High Yield is expected to generate 0.66 times more return on investment than Government Securities. However, Siit High Yield is 1.51 times less risky than Government Securities. It trades about 0.23 of its potential returns per unit of risk. Government Securities Fund is currently generating about -0.11 per unit of risk. If you would invest 700.00 in Siit High Yield on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Siit High Yield or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Siit High Yield vs. Government Securities Fund
Performance |
| Timeline |
| Siit High Yield |
| Government Securities |
Siit High and Government Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Government Securities
The main advantage of trading using opposite Siit High and Government Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Government Securities 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 Government Securities will offset losses from the drop in Government Securities' long position.| Siit High vs. Calvert High Yield | Siit High vs. Metropolitan West High | Siit High vs. Artisan High Income | Siit High vs. Pace High Yield |
| Government Securities vs. Siit High Yield | Government Securities vs. Blackrock High Yield | Government Securities vs. Prudential High Yield | Government Securities vs. Jpmorgan 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |