Correlation Between Siit Emerging and Shelton Emerging
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Shelton Emerging 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 Emerging and Shelton Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Shelton Emerging Markets, you can compare the effects of market volatilities on Siit Emerging and Shelton Emerging 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 Emerging with a short position of Shelton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Shelton Emerging.
Diversification Opportunities for Siit Emerging and Shelton Emerging
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Shelton is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Emerging Markets and Siit 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 Siit Emerging Markets are associated (or correlated) with Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Siit Emerging i.e., Siit Emerging and Shelton Emerging go up and down completely randomly.
Pair Corralation between Siit Emerging and Shelton Emerging
Assuming the 90 days horizon Siit Emerging Markets is expected to generate 0.85 times more return on investment than Shelton Emerging. However, Siit Emerging Markets is 1.18 times less risky than Shelton Emerging. It trades about 0.03 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about 0.01 per unit of risk. If you would invest 974.00 in Siit Emerging Markets on August 28, 2024 and sell it today you would earn a total of 31.00 from holding Siit Emerging Markets or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Siit Emerging Markets vs. Shelton Emerging Markets
Performance |
| Timeline |
| Siit Emerging Markets |
| Shelton Emerging Markets |
Siit Emerging and Shelton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Shelton Emerging
The main advantage of trading using opposite Siit Emerging and Shelton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Shelton Emerging 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 Shelton Emerging will offset losses from the drop in Shelton Emerging's long position.| Siit Emerging vs. Sit International Equity | Siit Emerging vs. Simt E Fixed | Siit Emerging vs. Simt Multi Asset Income | Siit Emerging vs. Simt Global Managed |
| Shelton Emerging vs. Wcm Focused Emerging | Shelton Emerging vs. Balter Invenomic Fund | Shelton Emerging vs. California Tax Free Income | Shelton Emerging vs. Shelton Funds |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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