Correlation Between Siit Small and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Siit Small and Glg Intl 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 Glg Intl 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 Glg Intl Small, you can compare the effects of market volatilities on Siit Small and Glg Intl 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 Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Glg Intl.
Diversification Opportunities for Siit Small and Glg Intl
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siit and Glg is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small 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 Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Siit Small i.e., Siit Small and Glg Intl go up and down completely randomly.
Pair Corralation between Siit Small and Glg Intl
Assuming the 90 days horizon Siit Small Mid is expected to generate 0.9 times more return on investment than Glg Intl. However, Siit Small Mid is 1.11 times less risky than Glg Intl. It trades about 0.18 of its potential returns per unit of risk. Glg Intl Small is currently generating about 0.11 per unit of risk. If you would invest 1,015 in Siit Small Mid on October 21, 2024 and sell it today you would earn a total of 27.00 from holding Siit Small Mid or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Mid vs. Glg Intl Small
Performance |
| Timeline |
| Siit Small Mid |
| Glg Intl Small |
Siit Small and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Glg Intl
The main advantage of trading using opposite Siit Small and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.| Siit Small vs. Semiconductor Ultrasector Profund | Siit Small vs. Eip Growth And | Siit Small vs. Rbb Fund | Siit Small vs. Qs Growth Fund |
| Glg Intl vs. Ab Small Cap | Glg Intl vs. Nasdaq 100 Profund Nasdaq 100 | Glg Intl vs. Tax Managed Large Cap | Glg Intl vs. Jp Morgan Smartretirement |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |