Correlation Between Siit Large and Multi-asset Growth
Can any of the company-specific risk be diversified away by investing in both Siit Large and Multi-asset 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 Multi-asset 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 Multi Asset Growth Strategy, you can compare the effects of market volatilities on Siit Large and Multi-asset 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 Multi-asset Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Multi-asset Growth.
Diversification Opportunities for Siit Large and Multi-asset Growth
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siit and Multi-asset is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Multi Asset Growth Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Asset 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 Multi-asset Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Asset Growth has no effect on the direction of Siit Large i.e., Siit Large and Multi-asset Growth go up and down completely randomly.
Pair Corralation between Siit Large and Multi-asset Growth
Assuming the 90 days horizon Siit Large Cap is expected to generate 1.94 times more return on investment than Multi-asset Growth. However, Siit Large is 1.94 times more volatile than Multi Asset Growth Strategy. It trades about 0.05 of its potential returns per unit of risk. Multi Asset Growth Strategy is currently generating about 0.08 per unit of risk. If you would invest 1,414 in Siit Large Cap on August 25, 2024 and sell it today you would earn a total of 307.00 from holding Siit Large Cap or generate 21.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Multi Asset Growth Strategy
Performance |
| Timeline |
| Siit Large Cap |
| Multi Asset Growth |
Siit Large and Multi-asset Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Multi-asset Growth
The main advantage of trading using opposite Siit Large and Multi-asset Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Multi-asset 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 Multi-asset Growth will offset losses from the drop in Multi-asset Growth's long position.| Siit Large vs. Simt Multi Asset Accumulation | Siit Large vs. Saat Market Growth | Siit Large vs. Simt Real Return | Siit Large vs. Simt Small Cap |
| Multi-asset Growth vs. Rational Strategic Allocation | Multi-asset Growth vs. William Blair Large | Multi-asset Growth vs. Federated Mdt Large | Multi-asset Growth vs. Siit 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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