Correlation Between Stet Intermediate and Siit High
Can any of the company-specific risk be diversified away by investing in both Stet Intermediate and Siit High 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 Stet Intermediate and Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stet Intermediate Term and Siit High Yield, you can compare the effects of market volatilities on Stet Intermediate and Siit High 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 Stet Intermediate with a short position of Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stet Intermediate and Siit High.
Diversification Opportunities for Stet Intermediate and Siit High
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stet and Siit is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Stet Intermediate Term and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Stet Intermediate 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 Stet Intermediate Term are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Stet Intermediate i.e., Stet Intermediate and Siit High go up and down completely randomly.
Pair Corralation between Stet Intermediate and Siit High
Assuming the 90 days horizon Stet Intermediate Term is expected to generate 1.38 times more return on investment than Siit High. However, Stet Intermediate is 1.38 times more volatile than Siit High Yield. It trades about 0.2 of its potential returns per unit of risk. Siit High Yield is currently generating about 0.17 per unit of risk. If you would invest 1,106 in Stet Intermediate Term on August 31, 2024 and sell it today you would earn a total of 12.00 from holding Stet Intermediate Term or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stet Intermediate Term vs. Siit High Yield
Performance |
| Timeline |
| Stet Intermediate Term |
| Siit High Yield |
Stet Intermediate and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stet Intermediate and Siit High
The main advantage of trading using opposite Stet Intermediate and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stet Intermediate position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Stet Intermediate vs. Sit International Equity | Stet Intermediate vs. Intermediate Taxamt Free Fund | Stet Intermediate vs. Goldman Sachs Short | Stet Intermediate vs. Simt High Yield |
| Siit High vs. Vanguard High Yield Corporate | Siit High vs. Vanguard High Yield Porate | Siit High vs. Blackrock Hi Yld | Siit High vs. Blackrock High Yield |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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