Correlation Between Siit Large and Meridian Growth
Can any of the company-specific risk be diversified away by investing in both Siit Large and Meridian Growth 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 Large and Meridian Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Large Cap and Meridian Growth Fund, you can compare the effects of market volatilities on Siit Large and Meridian Growth 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 Large with a short position of Meridian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Meridian Growth.
Diversification Opportunities for Siit Large and Meridian Growth
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Meridian is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Meridian Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Growth and Siit Large 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 Large Cap are associated (or correlated) with Meridian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Growth has no effect on the direction of Siit Large i.e., Siit Large and Meridian Growth go up and down completely randomly.
Pair Corralation between Siit Large and Meridian Growth
Assuming the 90 days horizon Siit Large Cap is expected to generate 0.83 times more return on investment than Meridian Growth. However, Siit Large Cap is 1.2 times less risky than Meridian Growth. It trades about 0.05 of its potential returns per unit of risk. Meridian Growth Fund is currently generating about 0.03 per unit of risk. If you would invest 1,393 in Siit Large Cap on August 30, 2024 and sell it today you would earn a total of 344.00 from holding Siit Large Cap or generate 24.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Meridian Growth Fund
Performance |
| Timeline |
| Siit Large Cap |
| Meridian Growth |
Siit Large and Meridian Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Meridian Growth
The main advantage of trading using opposite Siit Large and Meridian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Meridian Growth 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 Meridian Growth will offset losses from the drop in Meridian Growth's long position.| Siit Large vs. Pace High Yield | Siit Large vs. Lord Abbett High | Siit Large vs. Msift High Yield | Siit Large vs. Prudential High Yield |
| Meridian Growth vs. Dunham Large Cap | Meridian Growth vs. Dodge Cox Stock | Meridian Growth vs. Cb Large Cap | Meridian Growth vs. Qs Large Cap |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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