Correlation Between Siit High and Western Assets
Can any of the company-specific risk be diversified away by investing in both Siit High and Western Assets 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 Assets 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 Assets Emerging, you can compare the effects of market volatilities on Siit High and Western Assets 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 Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Western Assets.
Diversification Opportunities for Siit High and Western Assets
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siit and Western is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Western Assets Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Assets Emerging 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 Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Assets Emerging has no effect on the direction of Siit High i.e., Siit High and Western Assets go up and down completely randomly.
Pair Corralation between Siit High and Western Assets
Assuming the 90 days horizon Siit High Yield is expected to generate 1.04 times more return on investment than Western Assets. However, Siit High is 1.04 times more volatile than Western Assets Emerging. It trades about 0.27 of its potential returns per unit of risk. Western Assets Emerging is currently generating about 0.17 per unit of risk. If you would invest 706.00 in Siit High Yield on October 23, 2024 and sell it today you would earn a total of 10.00 from holding Siit High Yield or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Western Assets Emerging
Performance |
| Timeline |
| Siit High Yield |
| Western Assets Emerging |
Siit High and Western Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Western Assets
The main advantage of trading using opposite Siit High and Western Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Western Assets 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 Assets will offset losses from the drop in Western Assets' long position.| Siit High vs. Barings Global Floating | Siit High vs. Qs Global Equity | Siit High vs. Us Global Investors | Siit High vs. Mirova Global Green |
| Western Assets vs. Siit High Yield | Western Assets vs. Versatile Bond Portfolio | Western Assets vs. Gmo High Yield | Western Assets vs. Blrc Sgy Mnp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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