Correlation Between Technology Communications and Siit Emerging

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

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

Diversification Opportunities for Technology Communications and Siit Emerging

0.96

Correlation Coefficient

Technology Communications  Siit Emerging

Almost no diversification

The 3 months correlation between Technology and Siit is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Technology Munications Portfol and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets and Technology Communications 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 Technology Munications Portfolio are associated (or correlated) with Siit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Technology Communications i.e., Technology Communications and Siit Emerging go up and down completely randomly.

Pair Corralation between Technology Communications and Siit Emerging

Assuming the 90 days horizon Technology Munications Portfolio is expected to generate 3.55 times more return on investment than Siit Emerging. However, Technology Communications is 3.55 times more volatile than Siit Emerging Markets. It trades about 0.21 of its potential returns per unit of risk. Siit Emerging Markets is currently generating about 0.43 per unit of risk. If you would invest  1,157  in Technology Munications Portfolio on May 18, 2025 and sell it today you would earn a total of  133.00  from holding Technology Munications Portfolio or generate 11.5% return on investment over 90 days.

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

Technology Munications Portfol  vs.  Siit Emerging Markets

Technology Communications

Risk-Adjusted Performance

Solid

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

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 33 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Siit Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Technology Communications and Siit Emerging

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

The idea behind Technology Munications Portfolio and Siit 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.