Correlation Between Ab Centrated and Siit E

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

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

Diversification Opportunities for Ab Centrated and Siit E

-0.15

Correlation Coefficient

Ab Centrated  Siit E

Good diversification

The 3 months correlation between WPASX and Siit is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ab Centrated Growth and Siit E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit E Fixed and Ab Centrated 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 Ab Centrated Growth are associated (or correlated) with Siit E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit E Fixed has no effect on the direction of Ab Centrated i.e., Ab Centrated and Siit E go up and down completely randomly.

Pair Corralation between Ab Centrated and Siit E

Assuming the 90 days horizon Ab Centrated Growth is expected to generate 15.91 times more return on investment than Siit E. However, Ab Centrated is 15.91 times more volatile than Siit E Fixed. It trades about 0.24 of its potential returns per unit of risk. Siit E Fixed is currently generating about -0.07 per unit of risk. If you would invest  4,486  in Ab Centrated Growth on September 17, 2025 and sell it today you would earn a total of  551.00  from holding Ab Centrated Growth or generate 12.28% return on investment over 90 days.

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

Ab Centrated Growth  vs.  Siit E Fixed

Ab Centrated Growth

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Centrated Growth are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ab Centrated may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Siit E Fixed

Risk-Adjusted Performance

Weakest

Over the last 90 days Siit E Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Siit E is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ab Centrated and Siit E

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

The idea behind Ab Centrated Growth and Siit E Fixed 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.