Correlation Between Sit Large and Sit International
Can any of the company-specific risk be diversified away by investing in both Sit Large and Sit International 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 Large and Sit International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Large Cap and Sit International Growth, you can compare the effects of market volatilities on Sit Large and Sit International 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 Large with a short position of Sit International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Large and Sit International.
Diversification Opportunities for Sit Large and Sit International
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sit and Sit is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sit Large Cap and Sit International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit International Growth and Sit 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 Sit Large Cap are associated (or correlated) with Sit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit International Growth has no effect on the direction of Sit Large i.e., Sit Large and Sit International go up and down completely randomly.
Pair Corralation between Sit Large and Sit International
Assuming the 90 days horizon Sit Large Cap is expected to under-perform the Sit International. In addition to that, Sit Large is 1.11 times more volatile than Sit International Growth. It trades about -0.1 of its total potential returns per unit of risk. Sit International Growth is currently generating about 0.11 per unit of volatility. If you would invest 2,220 in Sit International Growth on November 28, 2024 and sell it today you would earn a total of 41.00 from holding Sit International Growth or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Large Cap vs. Sit International Growth
Performance |
| Timeline |
| Sit Large Cap |
| Sit International Growth |
Sit Large and Sit International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Large and Sit International
The main advantage of trading using opposite Sit Large and Sit International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Large position performs unexpectedly, Sit International 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 Sit International will offset losses from the drop in Sit International's long position.| Sit Large vs. Pnc Emerging Markets | Sit Large vs. Transamerica Emerging Markets | Sit Large vs. Barings Emerging Markets | Sit Large vs. Calvert Developed Market |
| Sit International vs. Barings Active Short | Sit International vs. T Rowe Price | Sit International vs. Catholic Responsible Investments | Sit International vs. Blackrock Global Longshort |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |