Correlation Between Brinker Capital and Siit Ultra

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

By analyzing existing cross correlation between Brinker Capital Destinations and Siit Ultra Short, you can compare the effects of market volatilities on Brinker Capital and Siit Ultra 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 Brinker Capital with a short position of Siit Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker Capital and Siit Ultra.

Diversification Opportunities for Brinker Capital and Siit Ultra

0.43

Correlation Coefficient

Brinker Capital  Siit Ultra

Very weak diversification

The 3 months correlation between Brinker and Siit is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Brinker Capital Destinations and Siit Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Ultra Short and Brinker Capital 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 Brinker Capital Destinations are associated (or correlated) with Siit Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Ultra Short has no effect on the direction of Brinker Capital i.e., Brinker Capital and Siit Ultra go up and down completely randomly.

Pair Corralation between Brinker Capital and Siit Ultra

Assuming the 90 days horizon Brinker Capital Destinations is expected to under-perform the Siit Ultra. In addition to that, Brinker Capital is 12.5 times more volatile than Siit Ultra Short. It trades about -0.1 of its total potential returns per unit of risk. Siit Ultra Short is currently generating about -0.08 per unit of volatility. If you would invest  997.00  in Siit Ultra Short on October 11, 2024 and sell it today you would lose (1.00) from holding Siit Ultra Short or give up 0.1% of portfolio value over 90 days.

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

Brinker Capital Destinations  vs.  Siit Ultra Short

Brinker Capital Dest

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Brinker Capital Destinations are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Brinker Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Siit Ultra Short

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Ultra Short are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit Ultra is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Brinker Capital and Siit Ultra

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

The idea behind Brinker Capital Destinations and Siit Ultra Short 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.