Correlation Between Siit Emerging and Payden Us
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Payden Us 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 Payden Us 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 Payden Government Fund, you can compare the effects of market volatilities on Siit Emerging and Payden Us 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 Payden Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Payden Us.
Diversification Opportunities for Siit Emerging and Payden Us
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siit and Payden is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Payden Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Government 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 Payden Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Government has no effect on the direction of Siit Emerging i.e., Siit Emerging and Payden Us go up and down completely randomly.
Pair Corralation between Siit Emerging and Payden Us
Assuming the 90 days horizon Siit Emerging Markets is expected to generate 4.62 times more return on investment than Payden Us. However, Siit Emerging is 4.62 times more volatile than Payden Government Fund. It trades about 0.08 of its potential returns per unit of risk. Payden Government Fund is currently generating about 0.1 per unit of risk. If you would invest 870.00 in Siit Emerging Markets on August 25, 2024 and sell it today you would earn a total of 130.00 from holding Siit Emerging Markets or generate 14.94% 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. Payden Government Fund
Performance |
| Timeline |
| Siit Emerging Markets |
| Payden Government |
Siit Emerging and Payden Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Payden Us
The main advantage of trading using opposite Siit Emerging and Payden Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Payden Us 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 Payden Us will offset losses from the drop in Payden Us' long position.| Siit Emerging vs. Western Asset Municipal | Siit Emerging vs. Arrow Managed Futures | Siit Emerging vs. Acm Dynamic Opportunity | Siit Emerging vs. Materials Portfolio Fidelity |
| Payden Us vs. Sp Midcap Index | Payden Us vs. Siit Emerging Markets | Payden Us vs. Ab All Market | Payden Us vs. Aqr Equity Market |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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