Correlation Between Siit Small and Congressional Effect
Can any of the company-specific risk be diversified away by investing in both Siit Small and Congressional Effect 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 Small and Congressional Effect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Small Mid and Congressional Effect Fund, you can compare the effects of market volatilities on Siit Small and Congressional Effect 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 Small with a short position of Congressional Effect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Congressional Effect.
Diversification Opportunities for Siit Small and Congressional Effect
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Congressional is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Congressional Effect Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Congressional Effect and Siit Small 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 Small Mid are associated (or correlated) with Congressional Effect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Congressional Effect has no effect on the direction of Siit Small i.e., Siit Small and Congressional Effect go up and down completely randomly.
Pair Corralation between Siit Small and Congressional Effect
Assuming the 90 days horizon Siit Small Mid is expected to generate 1.31 times more return on investment than Congressional Effect. However, Siit Small is 1.31 times more volatile than Congressional Effect Fund. It trades about 0.06 of its potential returns per unit of risk. Congressional Effect Fund is currently generating about 0.06 per unit of risk. If you would invest 855.00 in Siit Small Mid on September 13, 2024 and sell it today you would earn a total of 299.00 from holding Siit Small Mid or generate 34.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Mid vs. Congressional Effect Fund
Performance |
| Timeline |
| Siit Small Mid |
| Congressional Effect |
Siit Small and Congressional Effect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Congressional Effect
The main advantage of trading using opposite Siit Small and Congressional Effect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Congressional Effect 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 Congressional Effect will offset losses from the drop in Congressional Effect's long position.| Siit Small vs. Financials Ultrasector Profund | Siit Small vs. John Hancock Financial | Siit Small vs. Mesirow Financial Small | Siit Small vs. Davis Financial Fund |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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