Correlation Between Us Vector and Siit Equity

Can any of the company-specific risk be diversified away by investing in both Us Vector and Siit Equity 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 Us Vector and Siit Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Us Vector Equity and Siit Equity Factor, you can compare the effects of market volatilities on Us Vector and Siit Equity 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 Us Vector with a short position of Siit Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Vector and Siit Equity.

Diversification Opportunities for Us Vector and Siit Equity

0.97

Correlation Coefficient

Us Vector  Siit Equity

Almost no diversification

The 3 months correlation between DFVEX and Siit is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Us Vector Equity and Siit Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Equity Factor and Us Vector 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 Us Vector Equity are associated (or correlated) with Siit Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Equity Factor has no effect on the direction of Us Vector i.e., Us Vector and Siit Equity go up and down completely randomly.

Pair Corralation between Us Vector and Siit Equity

Assuming the 90 days horizon Us Vector Equity is expected to generate 1.2 times more return on investment than Siit Equity. However, Us Vector is 1.2 times more volatile than Siit Equity Factor. It trades about 0.21 of its potential returns per unit of risk. Siit Equity Factor is currently generating about 0.24 per unit of risk. If you would invest  2,564  in Us Vector Equity on May 3, 2025 and sell it today you would earn a total of  284.00  from holding Us Vector Equity or generate 11.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Us Vector Equity  vs.  Siit Equity Factor

Us Vector Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Us Vector Equity are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Us Vector may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Siit Equity Factor

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Equity Factor are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Siit Equity may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Us Vector and Siit Equity

The main advantage of trading using opposite Us Vector and Siit Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Vector position performs unexpectedly, Siit Equity 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 Equity will offset losses from the drop in Siit Equity's long position.

The idea behind Us Vector Equity and Siit Equity Factor 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.