Correlation Between Siit Emerging and Equity Growth

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

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

Diversification Opportunities for Siit Emerging and Equity Growth

0.97

Correlation Coefficient

Siit Emerging  Equity Growth

Almost no diversification

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

Pair Corralation between Siit Emerging and Equity Growth

Assuming the 90 days horizon Siit Emerging is expected to generate 1.43 times less return on investment than Equity Growth. But when comparing it to its historical volatility, Siit Emerging Markets is 2.93 times less risky than Equity Growth. It trades about 0.43 of its potential returns per unit of risk. Equity Growth Fund is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  3,342  in Equity Growth Fund on May 17, 2025 and sell it today you would earn a total of  312.00  from holding Equity Growth Fund or generate 9.34% return on investment over 90 days.

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

Siit Emerging Markets  vs.  Equity Growth Fund

Siit Emerging Markets

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Emerging Markets are ranked lower than 34 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly fragile basic indicators, Siit Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Equity Growth

Risk-Adjusted Performance

Solid

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

Pair Trading with Siit Emerging and Equity Growth

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

The idea behind Siit Emerging Markets and Equity Growth Fund 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.