Correlation Between Sit Esg and Sit U
Can any of the company-specific risk be diversified away by investing in both Sit Esg and Sit U 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 Sit Esg and Sit U into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Esg Growth and Sit U S, you can compare the effects of market volatilities on Sit Esg and Sit U 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 Sit Esg with a short position of Sit U. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Esg and Sit U.
Diversification Opportunities for Sit Esg and Sit U
Very good diversification
The 3 months correlation between Sit and Sit is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sit Esg Growth and Sit U S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit U S and Sit Esg 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 Sit Esg Growth are associated (or correlated) with Sit U. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit U S has no effect on the direction of Sit Esg i.e., Sit Esg and Sit U go up and down completely randomly.
Pair Corralation between Sit Esg and Sit U
Assuming the 90 days horizon Sit Esg Growth is expected to under-perform the Sit U. In addition to that, Sit Esg is 4.42 times more volatile than Sit U S. It trades about -0.05 of its total potential returns per unit of risk. Sit U S is currently generating about 0.18 per unit of volatility. If you would invest 1,007 in Sit U S on December 26, 2024 and sell it today you would earn a total of 25.00 from holding Sit U S or generate 2.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Sit Esg Growth vs. Sit U S
Performance |
Timeline |
Sit Esg Growth |
Sit U S |
Sit Esg and Sit U Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sit Esg and Sit U
The main advantage of trading using opposite Sit Esg and Sit U positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Esg position performs unexpectedly, Sit U 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 Sit U will offset losses from the drop in Sit U's long position.Sit Esg vs. Hunter Small Cap | Sit Esg vs. Touchstone Small Cap | Sit Esg vs. Old Westbury Small | Sit Esg vs. Siit Small Cap |
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Check out your portfolio center.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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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