Correlation Between Siit High and Value Fund
Can any of the company-specific risk be diversified away by investing in both Siit High and Value Fund 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 High and Value Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Value Fund I, you can compare the effects of market volatilities on Siit High and Value Fund 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 High with a short position of Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Value Fund.
Diversification Opportunities for Siit High and Value Fund
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Value is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Value Fund I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund I and Siit High 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 High Yield are associated (or correlated) with Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund I has no effect on the direction of Siit High i.e., Siit High and Value Fund go up and down completely randomly.
Pair Corralation between Siit High and Value Fund
Assuming the 90 days horizon Siit High is expected to generate 1.88 times less return on investment than Value Fund. But when comparing it to its historical volatility, Siit High Yield is 3.74 times less risky than Value Fund. It trades about 0.37 of its potential returns per unit of risk. Value Fund I is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 760.00 in Value Fund I on April 24, 2025 and sell it today you would earn a total of 66.00 from holding Value Fund I or generate 8.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.39% |
Values | Daily Returns |
Siit High Yield vs. Value Fund I
Performance |
Timeline |
Siit High Yield |
Value Fund I |
Siit High and Value Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siit High and Value Fund
The main advantage of trading using opposite Siit High and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund's long position.Siit High vs. Qs Moderate Growth | Siit High vs. Morningstar Growth Etf | Siit High vs. Pace Large Growth | Siit High vs. Upright Growth Income |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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