Correlation Between Siit Emerging and Salient Tactical
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Salient Tactical 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 Salient Tactical 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 Salient Tactical Growth, you can compare the effects of market volatilities on Siit Emerging and Salient Tactical 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 Salient Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Salient Tactical.
Diversification Opportunities for Siit Emerging and Salient Tactical
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siit and Salient is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Salient Tactical Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Tactical Growth 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 Salient Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Tactical Growth has no effect on the direction of Siit Emerging i.e., Siit Emerging and Salient Tactical go up and down completely randomly.
Pair Corralation between Siit Emerging and Salient Tactical
Assuming the 90 days horizon Siit Emerging Markets is expected to generate 1.38 times more return on investment than Salient Tactical. However, Siit Emerging is 1.38 times more volatile than Salient Tactical Growth. It trades about 0.13 of its potential returns per unit of risk. Salient Tactical Growth is currently generating about 0.15 per unit of risk. If you would invest 1,004 in Siit Emerging Markets on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Siit Emerging Markets or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Salient Tactical Growth
Performance |
| Timeline |
| Siit Emerging Markets |
| Salient Tactical Growth |
Siit Emerging and Salient Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Salient Tactical
The main advantage of trading using opposite Siit Emerging and Salient Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Salient Tactical 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 Salient Tactical will offset losses from the drop in Salient Tactical's long position.| Siit Emerging vs. Simt Multi Asset Accumulation | Siit Emerging vs. Saat Market Growth | Siit Emerging vs. Simt Real Return | Siit Emerging vs. Simt Small Cap |
| Salient Tactical vs. Salient Tactical Plus | Salient Tactical vs. Salient Tactical Plus | Salient Tactical vs. Salient Tactical Plus | Salient Tactical vs. Salient Tactical Plus |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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