Correlation Between Westcore Flexible and Siit High
Can any of the company-specific risk be diversified away by investing in both Westcore Flexible and Siit High 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 Westcore Flexible and Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore Flexible Income and Siit High Yield, you can compare the effects of market volatilities on Westcore Flexible and Siit High 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 Westcore Flexible with a short position of Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Flexible and Siit High.
Diversification Opportunities for Westcore Flexible and Siit High
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Westcore and Siit is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Flexible Income and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Westcore Flexible 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 Westcore Flexible Income are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Westcore Flexible i.e., Westcore Flexible and Siit High go up and down completely randomly.
Pair Corralation between Westcore Flexible and Siit High
Assuming the 90 days horizon Westcore Flexible is expected to generate 3.14 times less return on investment than Siit High. But when comparing it to its historical volatility, Westcore Flexible Income is 1.33 times less risky than Siit High. It trades about 0.1 of its potential returns per unit of risk. Siit High Yield is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 707.00 in Siit High Yield on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Siit High Yield or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westcore Flexible Income vs. Siit High Yield
Performance |
| Timeline |
| Westcore Flexible Income |
| Siit High Yield |
Westcore Flexible and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Flexible and Siit High
The main advantage of trading using opposite Westcore Flexible and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Flexible position performs unexpectedly, Siit High 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 High will offset losses from the drop in Siit High's long position.| Westcore Flexible vs. Westcore Orado Tax Exempt | Westcore Flexible vs. Westcore Plus Bond | Westcore Flexible vs. Westcore Global Large Cap | Westcore Flexible vs. Westcore Small Cap Growth |
| Siit High vs. Calvert High Yield | Siit High vs. Metropolitan West High | Siit High vs. Artisan High Income | Siit High vs. Pace High Yield |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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