Correlation Between Sit Emerging and Aquagold International
Can any of the company-specific risk be diversified away by investing in both Sit Emerging and Aquagold International 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 Emerging and Aquagold International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Emerging Markets and Aquagold International, you can compare the effects of market volatilities on Sit Emerging and Aquagold International 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 Emerging with a short position of Aquagold International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Emerging and Aquagold International.
Diversification Opportunities for Sit Emerging and Aquagold International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sit and Aquagold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sit Emerging Markets and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International and Sit Emerging 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 Emerging Markets are associated (or correlated) with Aquagold International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquagold International has no effect on the direction of Sit Emerging i.e., Sit Emerging and Aquagold International go up and down completely randomly.
Pair Corralation between Sit Emerging and Aquagold International
Assuming the 90 days horizon Sit Emerging is expected to generate 90.47 times less return on investment than Aquagold International. But when comparing it to its historical volatility, Sit Emerging Markets is 124.61 times less risky than Aquagold International. It trades about 0.08 of its potential returns per unit of risk. Aquagold International is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Aquagold International on August 28, 2024 and sell it today you would lose (16.40) from holding Aquagold International or give up 96.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sit Emerging Markets vs. Aquagold International
Performance |
| Timeline |
| Sit Emerging Markets |
| Aquagold International |
Sit Emerging and Aquagold International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Emerging and Aquagold International
The main advantage of trading using opposite Sit Emerging and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Emerging position performs unexpectedly, Aquagold International 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 Aquagold International will offset losses from the drop in Aquagold International's long position.| Sit Emerging vs. Janus Global Technology | Sit Emerging vs. Invesco Technology Fund | Sit Emerging vs. Mfs Technology Fund | Sit Emerging vs. Blackrock Science Technology |
| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |