Correlation Between Siit High and Western Asset
Can any of the company-specific risk be diversified away by investing in both Siit High and Western Asset 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 Western Asset 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 Western Asset Inflation, you can compare the effects of market volatilities on Siit High and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Western Asset.
Diversification Opportunities for Siit High and Western Asset
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Western is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Inflation has no effect on the direction of Siit High i.e., Siit High and Western Asset go up and down completely randomly.
Pair Corralation between Siit High and Western Asset
Assuming the 90 days horizon Siit High Yield is expected to generate 0.91 times more return on investment than Western Asset. However, Siit High Yield is 1.1 times less risky than Western Asset. It trades about 0.12 of its potential returns per unit of risk. Western Asset Inflation is currently generating about 0.06 per unit of risk. If you would invest 654.00 in Siit High Yield on September 4, 2024 and sell it today you would earn a total of 64.00 from holding Siit High Yield or generate 9.79% 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. Western Asset Inflation
Performance |
| Timeline |
| Siit High Yield |
| Western Asset Inflation |
Siit High and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Western Asset
The main advantage of trading using opposite Siit High and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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