Correlation Between Siit Large and Catalyst Mlp

Can any of the company-specific risk be diversified away by investing in both Siit Large and Catalyst Mlp 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 Catalyst Mlp 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 Catalyst Mlp Infrastructure, you can compare the effects of market volatilities on Siit Large and Catalyst Mlp 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 Catalyst Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Catalyst Mlp.

Diversification Opportunities for Siit Large and Catalyst Mlp

0.86

Correlation Coefficient

Siit Large  Catalyst Mlp

Very poor diversification

The 3 months correlation between Siit and Catalyst is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Catalyst Mlp Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Mlp Infrast 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 Catalyst Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Mlp Infrast has no effect on the direction of Siit Large i.e., Siit Large and Catalyst Mlp go up and down completely randomly.

Pair Corralation between Siit Large and Catalyst Mlp

Assuming the 90 days horizon Siit Large Cap is expected to generate 0.6 times more return on investment than Catalyst Mlp. However, Siit Large Cap is 1.67 times less risky than Catalyst Mlp. It trades about 0.26 of its potential returns per unit of risk. Catalyst Mlp Infrastructure is currently generating about 0.12 per unit of risk. If you would invest  18,877  in Siit Large Cap on May 2, 2025 and sell it today you would earn a total of  2,330  from holding Siit Large Cap or generate 12.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

Siit Large Cap  vs.  Catalyst Mlp Infrastructure

Siit Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Large Cap are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Siit Large may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Catalyst Mlp Infrast

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Catalyst Mlp Infrastructure are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Catalyst Mlp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Siit Large and Catalyst Mlp

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

The idea behind Siit Large Cap and Catalyst Mlp Infrastructure 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.