Correlation Between Siit Small and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Siit Small and Old Westbury 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 Old Westbury 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 Old Westbury Small, you can compare the effects of market volatilities on Siit Small and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Old Westbury.
Diversification Opportunities for Siit Small and Old Westbury
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Old is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Old Westbury Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Small has no effect on the direction of Siit Small i.e., Siit Small and Old Westbury go up and down completely randomly.
Pair Corralation between Siit Small and Old Westbury
Assuming the 90 days horizon Siit Small Mid is expected to under-perform the Old Westbury. In addition to that, Siit Small is 1.41 times more volatile than Old Westbury Small. It trades about -0.03 of its total potential returns per unit of risk. Old Westbury Small is currently generating about 0.1 per unit of volatility. If you would invest 1,719 in Old Westbury Small on September 14, 2024 and sell it today you would earn a total of 20.00 from holding Old Westbury Small or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Mid vs. Old Westbury Small
Performance |
| Timeline |
| Siit Small Mid |
| Old Westbury Small |
Siit Small and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Old Westbury
The main advantage of trading using opposite Siit Small and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Siit Small vs. Franklin High Income | Siit Small vs. Fa 529 Aggressive | Siit Small vs. Artisan High Income | Siit Small vs. Western Asset High |
| Old Westbury vs. Rational Defensive Growth | Old Westbury vs. Smallcap Growth Fund | Old Westbury vs. Small Pany Growth | Old Westbury vs. Qs Moderate Growth |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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