Correlation Between Sit Balanced and Sit Mutual
Can any of the company-specific risk be diversified away by investing in both Sit Balanced and Sit Mutual 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 Mutual 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 Mutual Funds, you can compare the effects of market volatilities on Sit Balanced and Sit Mutual 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 Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Balanced and Sit Mutual.
Diversification Opportunities for Sit Balanced and Sit Mutual
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SIT and Sit is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sit Balanced Fund and Sit Mutual Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Mutual Funds 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 Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Mutual Funds has no effect on the direction of Sit Balanced i.e., Sit Balanced and Sit Mutual go up and down completely randomly.
Pair Corralation between Sit Balanced and Sit Mutual
Assuming the 90 days horizon Sit Balanced Fund is expected to generate 3.26 times more return on investment than Sit Mutual. However, Sit Balanced is 3.26 times more volatile than Sit Mutual Funds. It trades about 0.11 of its potential returns per unit of risk. Sit Mutual Funds is currently generating about 0.07 per unit of risk. If you would invest 2,538 in Sit Balanced Fund on August 30, 2024 and sell it today you would earn a total of 1,058 from holding Sit Balanced Fund or generate 41.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Balanced Fund vs. Sit Mutual Funds
Performance |
| Timeline |
| Sit Balanced |
| Sit Mutual Funds |
Sit Balanced and Sit Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Balanced and Sit Mutual
The main advantage of trading using opposite Sit Balanced and Sit Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Balanced position performs unexpectedly, Sit Mutual 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 Mutual will offset losses from the drop in Sit Mutual'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 Mutual vs. Kinetics Market Opportunities | Sit Mutual vs. Versatile Bond Portfolio | Sit Mutual vs. Barings Active Short | Sit Mutual vs. Bbh Intermediate Municipal |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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