Correlation Between Sit Balanced and Sit Esg
Can any of the company-specific risk be diversified away by investing in both Sit Balanced and Sit Esg 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 Sit Balanced and Sit Esg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Balanced Fund and Sit Esg Growth, you can compare the effects of market volatilities on Sit Balanced and Sit Esg 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 Sit Balanced with a short position of Sit Esg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Balanced and Sit Esg.
Diversification Opportunities for Sit Balanced and Sit Esg
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SIT and Sit is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sit Balanced Fund and Sit Esg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Esg Growth and Sit Balanced 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 Sit Balanced Fund are associated (or correlated) with Sit Esg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Esg Growth has no effect on the direction of Sit Balanced i.e., Sit Balanced and Sit Esg go up and down completely randomly.
Pair Corralation between Sit Balanced and Sit Esg
Assuming the 90 days horizon Sit Balanced is expected to generate 1.05 times less return on investment than Sit Esg. But when comparing it to its historical volatility, Sit Balanced Fund is 1.27 times less risky than Sit Esg. It trades about 0.13 of its potential returns per unit of risk. Sit Esg Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,639 in Sit Esg Growth on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Sit Esg Growth or generate 36.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Balanced Fund vs. Sit Esg Growth
Performance |
| Timeline |
| Sit Balanced |
| Sit Esg Growth |
Sit Balanced and Sit Esg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Balanced and Sit Esg
The main advantage of trading using opposite Sit Balanced and Sit Esg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Balanced position performs unexpectedly, Sit Esg 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 Sit Esg will offset losses from the drop in Sit Esg's long position.| Sit Balanced vs. Value Line Asset | Sit Balanced vs. Sit Large Cap | Sit Balanced vs. Sit Small Cap | Sit Balanced vs. Plumb Balanced Fund |
| Sit Esg vs. Bbh Intermediate Municipal | Sit Esg vs. T Rowe Price | Sit Esg vs. The Hartford Municipal | Sit Esg vs. Nebraska Municipal Fund |
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 Directory module to find actively traded commodities issued by global exchanges.
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