Correlation Between Siit Small and Siit E
Can any of the company-specific risk be diversified away by investing in both Siit Small and Siit E 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 Siit E 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 Siit E Fixed, you can compare the effects of market volatilities on Siit Small and Siit E 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 Siit E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Siit E.
Diversification Opportunities for Siit Small and Siit E
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siit and Siit is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Siit E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit E Fixed 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 Siit E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit E Fixed has no effect on the direction of Siit Small i.e., Siit Small and Siit E go up and down completely randomly.
Pair Corralation between Siit Small and Siit E
Assuming the 90 days horizon Siit Small Mid is expected to generate 3.15 times more return on investment than Siit E. However, Siit Small is 3.15 times more volatile than Siit E Fixed. It trades about 0.11 of its potential returns per unit of risk. Siit E Fixed is currently generating about 0.11 per unit of risk. If you would invest 1,014 in Siit Small Mid on August 28, 2024 and sell it today you would earn a total of 170.00 from holding Siit Small Mid or generate 16.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Mid vs. Siit E Fixed
Performance |
| Timeline |
| Siit Small Mid |
| Siit E Fixed |
Siit Small and Siit E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Siit E
The main advantage of trading using opposite Siit Small and Siit E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Siit E 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 E will offset losses from the drop in Siit E's long position.| Siit Small vs. Fabxx | Siit Small vs. Ab Value Fund | Siit Small vs. Materials Portfolio Fidelity | Siit Small vs. Scharf Global Opportunity |
| Siit E vs. Simt Multi Asset Accumulation | Siit E vs. Saat Market Growth | Siit E vs. Simt Real Return | Siit E vs. Simt Small Cap |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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