Correlation Between Ultra Nasdaq-100 and Sit Esg
Can any of the company-specific risk be diversified away by investing in both Ultra Nasdaq-100 and Sit Esg 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 Ultra Nasdaq-100 and Sit Esg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Nasdaq 100 Profunds and Sit Esg Growth, you can compare the effects of market volatilities on Ultra Nasdaq-100 and Sit Esg 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 Ultra Nasdaq-100 with a short position of Sit Esg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Nasdaq-100 and Sit Esg.
Diversification Opportunities for Ultra Nasdaq-100 and Sit Esg
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ultra and Sit is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Nasdaq 100 Profunds and Sit Esg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Esg Growth and Ultra Nasdaq-100 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 Ultra Nasdaq 100 Profunds are associated (or correlated) with Sit Esg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Esg Growth has no effect on the direction of Ultra Nasdaq-100 i.e., Ultra Nasdaq-100 and Sit Esg go up and down completely randomly.
Pair Corralation between Ultra Nasdaq-100 and Sit Esg
Assuming the 90 days horizon Ultra Nasdaq 100 Profunds is expected to under-perform the Sit Esg. In addition to that, Ultra Nasdaq-100 is 2.8 times more volatile than Sit Esg Growth. It trades about -0.03 of its total potential returns per unit of risk. Sit Esg Growth is currently generating about -0.02 per unit of volatility. If you would invest 2,161 in Sit Esg Growth on January 11, 2025 and sell it today you would lose (107.00) from holding Sit Esg Growth or give up 4.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultra Nasdaq 100 Profunds vs. Sit Esg Growth
Performance |
| Timeline |
| Ultra Nasdaq 100 |
| Sit Esg Growth |
Ultra Nasdaq-100 and Sit Esg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra Nasdaq-100 and Sit Esg
The main advantage of trading using opposite Ultra Nasdaq-100 and Sit Esg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Nasdaq-100 position performs unexpectedly, Sit Esg 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 Sit Esg will offset losses from the drop in Sit Esg's long position.The idea behind Ultra Nasdaq 100 Profunds and Sit Esg Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Sit Esg vs. Sit Small Cap | Sit Esg vs. Sit Global Dividend | Sit Esg vs. Sit Global Dividend | Sit Esg vs. Sit 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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