Correlation Between Siit Small and Siit Managed
Can any of the company-specific risk be diversified away by investing in both Siit Small and Siit Managed 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 Managed 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 Managed Volatility, you can compare the effects of market volatilities on Siit Small and Siit Managed 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 Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Siit Managed.
Diversification Opportunities for Siit Small and Siit Managed
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Siit and Siit is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Siit Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Managed Volatility 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 Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Managed Volatility has no effect on the direction of Siit Small i.e., Siit Small and Siit Managed go up and down completely randomly.
Pair Corralation between Siit Small and Siit Managed
Assuming the 90 days horizon Siit Small Mid is expected to under-perform the Siit Managed. In addition to that, Siit Small is 1.44 times more volatile than Siit Managed Volatility. It trades about -0.12 of its total potential returns per unit of risk. Siit Managed Volatility is currently generating about -0.11 per unit of volatility. If you would invest 1,296 in Siit Managed Volatility on September 12, 2024 and sell it today you would lose (17.00) from holding Siit Managed Volatility or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Siit Small Mid vs. Siit Managed Volatility
Performance |
| Timeline |
| Siit Small Mid |
| Siit Managed Volatility |
Siit Small and Siit Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Siit Managed
The main advantage of trading using opposite Siit Small and Siit Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Siit Managed 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 Managed will offset losses from the drop in Siit Managed's long position.| Siit Small vs. Rationalpier 88 Convertible | Siit Small vs. Allianzgi Convertible Income | Siit Small vs. Gabelli Convertible And | Siit Small vs. Lord Abbett Convertible |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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