Correlation Between Issachar Fund and Sit Emerging

Can any of the company-specific risk be diversified away by investing in both Issachar Fund and Sit Emerging 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 Issachar Fund and Sit Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Issachar Fund Class and Sit Emerging Markets, you can compare the effects of market volatilities on Issachar Fund and Sit Emerging 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 Issachar Fund with a short position of Sit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Sit Emerging.

Diversification Opportunities for Issachar Fund and Sit Emerging

0.38

Correlation Coefficient

Issachar Fund  Sit Emerging

Weak diversification

The 3 months correlation between Issachar and Sit is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Sit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Emerging Markets and Issachar Fund 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 Issachar Fund Class are associated (or correlated) with Sit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Emerging Markets has no effect on the direction of Issachar Fund i.e., Issachar Fund and Sit Emerging go up and down completely randomly.

Pair Corralation between Issachar Fund and Sit Emerging

Assuming the 90 days horizon Issachar Fund is expected to generate 1.33 times less return on investment than Sit Emerging. But when comparing it to its historical volatility, Issachar Fund Class is 1.09 times less risky than Sit Emerging. It trades about 0.05 of its potential returns per unit of risk. Sit Emerging Markets is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  867.00  in Sit Emerging Markets on February 26, 2025 and sell it today you would earn a total of  15.00  from holding Sit Emerging Markets or generate 1.73% return on investment over 90 days.

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

Issachar Fund Class  vs.  Sit Emerging Markets

Issachar Fund Class

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Issachar Fund Class are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Issachar Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sit Emerging Markets

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sit Emerging Markets are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Sit Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Issachar Fund and Sit Emerging

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

The idea behind Issachar Fund Class and Sit Emerging Markets 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.