Correlation Between Quantitative Longshort and Siit Us

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

By analyzing existing cross correlation between Quantitative Longshort Equity and Siit Equity Factor, you can compare the effects of market volatilities on Quantitative Longshort and Siit Us 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 Quantitative Longshort with a short position of Siit Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantitative Longshort and Siit Us.

Diversification Opportunities for Quantitative Longshort and Siit Us

0.91

Correlation Coefficient

Quantitative Longshort  Siit Us

Almost no diversification

The 3 months correlation between Quantitative and Siit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Quantitative Longshort Equity and Siit Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Equity Factor and Quantitative Longshort 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 Quantitative Longshort Equity are associated (or correlated) with Siit Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Equity Factor has no effect on the direction of Quantitative Longshort i.e., Quantitative Longshort and Siit Us go up and down completely randomly.

Pair Corralation between Quantitative Longshort and Siit Us

Assuming the 90 days horizon Quantitative Longshort Equity is expected to under-perform the Siit Us. But the mutual fund apears to be less risky and, when comparing its historical volatility, Quantitative Longshort Equity is 1.11 times less risky than Siit Us. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Siit Equity Factor is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  1,511  in Siit Equity Factor on October 9, 2024 and sell it today you would lose (54.00) from holding Siit Equity Factor or give up 3.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Quantitative Longshort Equity  vs.  Siit Equity Factor

Quantitative Longshort

Risk-Adjusted Performance

0 of 100

Very Weak

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

Siit Equity Factor

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Quantitative Longshort and Siit Us

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

The idea behind Quantitative Longshort Equity and Siit Equity Factor 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.