Correlation Between Siit Large and Gabelli Val

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

By analyzing existing cross correlation between Siit Large Cap and The Gabelli Val, you can compare the effects of market volatilities on Siit Large and Gabelli Val 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 Large with a short position of Gabelli Val. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Gabelli Val.

Diversification Opportunities for Siit Large and Gabelli Val

0.96

Correlation Coefficient

Siit Large  Gabelli Val

Almost no diversification

The 3 months correlation between Siit and Gabelli is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and The Gabelli Val in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Val and Siit Large 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 Large Cap are associated (or correlated) with Gabelli Val. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Val has no effect on the direction of Siit Large i.e., Siit Large and Gabelli Val go up and down completely randomly.

Pair Corralation between Siit Large and Gabelli Val

Assuming the 90 days horizon Siit Large Cap is expected to generate 1.07 times more return on investment than Gabelli Val. However, Siit Large is 1.07 times more volatile than The Gabelli Val. It trades about 0.1 of its potential returns per unit of risk. The Gabelli Val is currently generating about 0.1 per unit of risk. If you would invest  13,651  in Siit Large Cap on July 22, 2025 and sell it today you would earn a total of  8,495  from holding Siit Large Cap or generate 62.23% return on investment over 90 days.

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

Siit Large Cap  vs.  The Gabelli Val

Siit Large Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Large Cap are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gabelli Val

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in The Gabelli Val are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Gabelli Val is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Siit Large and Gabelli Val

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

The idea behind Siit Large Cap and The Gabelli Val 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.