Correlation Between Destinations International and Siit High

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Can any of the company-specific risk be diversified away by investing in both Destinations International and Siit High 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 Destinations International and Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Destinations International Equity and Siit High Yield, you can compare the effects of market volatilities on Destinations International and Siit High 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 Destinations International with a short position of Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Destinations International and Siit High.

Diversification Opportunities for Destinations International and Siit High

DestinationsSiitDiversified AwayDestinationsSiitDiversified Away100%
-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between Destinations and Siit is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Destinations International Equ and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Destinations International 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 Destinations International Equity are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Destinations International i.e., Destinations International and Siit High go up and down completely randomly.

Pair Corralation between Destinations International and Siit High

Assuming the 90 days horizon Destinations International Equity is expected to under-perform the Siit High. In addition to that, Destinations International is 3.26 times more volatile than Siit High Yield. It trades about -0.13 of its total potential returns per unit of risk. Siit High Yield is currently generating about 0.13 per unit of volatility. If you would invest  703.00  in Siit High Yield on October 21, 2024 and sell it today you would earn a total of  13.00  from holding Siit High Yield or generate 1.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Destinations International Equ  vs.  Siit High Yield

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-8-6-4-202
JavaScript chart by amCharts 3.21.15DIEZX SGYAX
       Timeline  
Destinations International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Destinations International Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Destinations International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan10.610.710.810.91111.111.211.311.411.5
Siit High Yield 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Siit High Yield are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan7.027.047.067.087.17.127.147.16

Destinations International and Siit High Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.31-0.98-0.65-0.32-0.04390.110.440.771.1 1234567
JavaScript chart by amCharts 3.21.15DIEZX SGYAX
       Returns  

Pair Trading with Destinations International and Siit High

The main advantage of trading using opposite Destinations International and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Destinations International position performs unexpectedly, Siit High 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 High will offset losses from the drop in Siit High's long position.
The idea behind Destinations International Equity and Siit High Yield 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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