Correlation Between Siit Emerging and Delaware Floating

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

Diversification Opportunities for Siit Emerging and Delaware Floating

0.88

Correlation Coefficient

Siit Emerging  Delaware Floating

Very poor diversification

The 3 months correlation between Siit and Delaware is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Delaware Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Floating Rate 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 Delaware Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Floating Rate has no effect on the direction of Siit Emerging i.e., Siit Emerging and Delaware Floating go up and down completely randomly.

Pair Corralation between Siit Emerging and Delaware Floating

Assuming the 90 days horizon Siit Emerging Markets is expected to generate 2.26 times more return on investment than Delaware Floating. However, Siit Emerging is 2.26 times more volatile than Delaware Floating Rate. It trades about 0.31 of its potential returns per unit of risk. Delaware Floating Rate is currently generating about 0.16 per unit of risk. If you would invest  894.00  in Siit Emerging Markets on July 4, 2025 and sell it today you would earn a total of  41.00  from holding Siit Emerging Markets or generate 4.59% return on investment over 90 days.

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

Siit Emerging Markets  vs.  Delaware Floating Rate

Siit Emerging Markets

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Emerging Markets are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Delaware Floating Rate

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Delaware Floating Rate are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Delaware Floating 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 Emerging and Delaware Floating

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

The idea behind Siit Emerging Markets and Delaware Floating Rate 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.