Correlation Between Sit Dividend and Sit Developing

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

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

Diversification Opportunities for Sit Dividend and Sit Developing

0.97

Correlation Coefficient

Sit Dividend  Sit Developing

Almost no diversification

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

Pair Corralation between Sit Dividend and Sit Developing

Assuming the 90 days horizon Sit Dividend is expected to generate 1.01 times less return on investment than Sit Developing. But when comparing it to its historical volatility, Sit Dividend Growth is 1.25 times less risky than Sit Developing. It trades about 0.08 of its potential returns per unit of risk. Sit Developing Markets is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,470  in Sit Developing Markets on May 14, 2025 and sell it today you would earn a total of  568.00  from holding Sit Developing Markets or generate 38.64% return on investment over 90 days.

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

Sit Dividend Growth  vs.  Sit Developing Markets

Sit Dividend Growth

Risk-Adjusted Performance

Solid

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

Sit Developing Markets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sit Developing Markets are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Sit Developing may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Sit Dividend and Sit Developing

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

The idea behind Sit Dividend Growth and Sit Developing 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.