Correlation Between Siit Ultra and Regional Bank
Can any of the company-specific risk be diversified away by investing in both Siit Ultra and Regional Bank 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 Ultra and Regional Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Ultra Short and Regional Bank Fund, you can compare the effects of market volatilities on Siit Ultra and Regional Bank 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 Ultra with a short position of Regional Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Ultra and Regional Bank.
Diversification Opportunities for Siit Ultra and Regional Bank
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siit and Regional is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Siit Ultra Short and Regional Bank Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Bank and Siit Ultra 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 Ultra Short are associated (or correlated) with Regional Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Bank has no effect on the direction of Siit Ultra i.e., Siit Ultra and Regional Bank go up and down completely randomly.
Pair Corralation between Siit Ultra and Regional Bank
Assuming the 90 days horizon Siit Ultra Short is expected to generate 0.08 times more return on investment than Regional Bank. However, Siit Ultra Short is 11.99 times less risky than Regional Bank. It trades about 0.21 of its potential returns per unit of risk. Regional Bank Fund is currently generating about -0.15 per unit of risk. If you would invest 992.00 in Siit Ultra Short on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Siit Ultra Short or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Ultra Short vs. Regional Bank Fund
Performance |
| Timeline |
| Siit Ultra Short |
| Regional Bank |
Siit Ultra and Regional Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Ultra and Regional Bank
The main advantage of trading using opposite Siit Ultra and Regional Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Ultra position performs unexpectedly, Regional Bank 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 Regional Bank will offset losses from the drop in Regional Bank's long position.| Siit Ultra vs. Inflation Linked Fixed Income | Siit Ultra vs. Tiaa Cref Inflation Link | Siit Ultra vs. Ab Bond Inflation | Siit Ultra vs. Simt Multi Asset Inflation |
| Regional Bank vs. Global Real Estate | Regional Bank vs. Fidelity Real Estate | Regional Bank vs. Rreef Property Trust | Regional Bank vs. Neuberger Berman Real |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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