Correlation Between Siit Small and Stringer Growth
Can any of the company-specific risk be diversified away by investing in both Siit Small and Stringer Growth 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 Stringer Growth 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 Stringer Growth Fund, you can compare the effects of market volatilities on Siit Small and Stringer Growth 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 Stringer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Stringer Growth.
Diversification Opportunities for Siit Small and Stringer Growth
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Stringer is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Stringer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stringer Growth 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 Stringer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stringer Growth has no effect on the direction of Siit Small i.e., Siit Small and Stringer Growth go up and down completely randomly.
Pair Corralation between Siit Small and Stringer Growth
Assuming the 90 days horizon Siit Small is expected to generate 1.15 times less return on investment than Stringer Growth. In addition to that, Siit Small is 2.05 times more volatile than Stringer Growth Fund. It trades about 0.03 of its total potential returns per unit of risk. Stringer Growth Fund is currently generating about 0.08 per unit of volatility. If you would invest 1,051 in Stringer Growth Fund on November 9, 2024 and sell it today you would earn a total of 228.00 from holding Stringer Growth Fund or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Mid vs. Stringer Growth Fund
Performance |
| Timeline |
| Siit Small Mid |
| Stringer Growth |
Siit Small and Stringer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Stringer Growth
The main advantage of trading using opposite Siit Small and Stringer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Stringer Growth 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 Stringer Growth will offset losses from the drop in Stringer Growth's long position.| Siit Small vs. Edward Jones Money | Siit Small vs. Fidelity Advisor Financial | Siit Small vs. Ab Government Exchange | Siit Small vs. Financials Ultrasector Profund |
| Stringer Growth vs. Transamerica Mlp Energy | Stringer Growth vs. Salient Mlp Energy | Stringer Growth vs. Oil Gas Ultrasector | Stringer Growth vs. Transamerica Mlp Energy |
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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