Correlation Between Siit High and Westcore Flexible
Can any of the company-specific risk be diversified away by investing in both Siit High and Westcore Flexible 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 Westcore Flexible 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 Westcore Flexible Income, you can compare the effects of market volatilities on Siit High and Westcore Flexible 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 Westcore Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Westcore Flexible.
Diversification Opportunities for Siit High and Westcore Flexible
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siit and Westcore is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Westcore Flexible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Flexible Income 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 Westcore Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Flexible Income has no effect on the direction of Siit High i.e., Siit High and Westcore Flexible go up and down completely randomly.
Pair Corralation between Siit High and Westcore Flexible
Assuming the 90 days horizon Siit High Yield is expected to generate 1.55 times more return on investment than Westcore Flexible. However, Siit High is 1.55 times more volatile than Westcore Flexible Income. It trades about 0.26 of its potential returns per unit of risk. Westcore Flexible Income is currently generating about 0.24 per unit of risk. If you would invest 671.00 in Siit High Yield on September 13, 2024 and sell it today you would earn a total of 49.00 from holding Siit High Yield or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Westcore Flexible Income
Performance |
| Timeline |
| Siit High Yield |
| Westcore Flexible Income |
Siit High and Westcore Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Westcore Flexible
The main advantage of trading using opposite Siit High and Westcore Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Westcore Flexible 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 Westcore Flexible will offset losses from the drop in Westcore Flexible's 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 |
| Westcore Flexible vs. Westcore Orado Tax Exempt | Westcore Flexible vs. Westcore Plus Bond | Westcore Flexible vs. Westcore Global Large Cap | Westcore Flexible vs. Westcore Small Cap Growth |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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