Correlation Between Sit International and Siit Us
Can any of the company-specific risk be diversified away by investing in both Sit International and Siit 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 Sit International and Siit Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit International Growth and Siit Equity Factor, you can compare the effects of market volatilities on Sit International and Siit 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 Sit International with a short position of Siit Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit International and Siit Us.
Diversification Opportunities for Sit International and Siit Us
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sit and Siit is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sit International Growth and Siit Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Equity Factor and Sit International 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 Sit International Growth are associated (or correlated) with Siit Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Equity Factor has no effect on the direction of Sit International i.e., Sit International and Siit Us go up and down completely randomly.
Pair Corralation between Sit International and Siit Us
Assuming the 90 days horizon Sit International Growth is expected to generate 0.64 times more return on investment than Siit Us. However, Sit International Growth is 1.55 times less risky than Siit Us. It trades about 0.01 of its potential returns per unit of risk. Siit Equity Factor is currently generating about 0.0 per unit of risk. If you would invest 2,251 in Sit International Growth on October 26, 2024 and sell it today you would earn a total of 3.00 from holding Sit International Growth or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit International Growth vs. Siit Equity Factor
Performance |
| Timeline |
| Sit International Growth |
| Siit Equity Factor |
Sit International and Siit Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit International and Siit Us
The main advantage of trading using opposite Sit International and Siit Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit International position performs unexpectedly, Siit 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 Siit Us will offset losses from the drop in Siit Us' long position.| Sit International vs. Putnam Money Market | Sit International vs. Prudential Government Money | Sit International vs. Hsbc Treasury Money | Sit International vs. Chestnut Street Exchange |
| Siit Us vs. Embark Commodity Strategy | Siit Us vs. Balanced Strategy Fund | Siit Us vs. Eagle Mlp Strategy | Siit Us vs. Wasatch Frontier Emerging |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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