Correlation Between Siit Large and Catalyst Exceed
Can any of the company-specific risk be diversified away by investing in both Siit Large and Catalyst Exceed 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 Siit Large and Catalyst Exceed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Large Cap and Catalyst Exceed Defined, you can compare the effects of market volatilities on Siit Large and Catalyst Exceed 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 Siit Large with a short position of Catalyst Exceed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Catalyst Exceed.
Diversification Opportunities for Siit Large and Catalyst Exceed
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and CATALYST is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Catalyst Exceed Defined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Exceed Defined and Siit Large 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 Siit Large Cap are associated (or correlated) with Catalyst Exceed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Exceed Defined has no effect on the direction of Siit Large i.e., Siit Large and Catalyst Exceed go up and down completely randomly.
Pair Corralation between Siit Large and Catalyst Exceed
Assuming the 90 days horizon Siit Large Cap is expected to generate 0.85 times more return on investment than Catalyst Exceed. However, Siit Large Cap is 1.18 times less risky than Catalyst Exceed. It trades about 0.29 of its potential returns per unit of risk. Catalyst Exceed Defined is currently generating about 0.21 per unit of risk. If you would invest 1,169 in Siit Large Cap on September 6, 2024 and sell it today you would earn a total of 139.00 from holding Siit Large Cap or generate 11.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.44% |
Values | Daily Returns |
Siit Large Cap vs. Catalyst Exceed Defined
Performance |
Timeline |
Siit Large Cap |
Catalyst Exceed Defined |
Siit Large and Catalyst Exceed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siit Large and Catalyst Exceed
The main advantage of trading using opposite Siit Large and Catalyst Exceed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Catalyst Exceed 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 Catalyst Exceed will offset losses from the drop in Catalyst Exceed's long position.Siit Large vs. Eip Growth And | Siit Large vs. Rational Defensive Growth | Siit Large vs. Champlain Mid Cap | Siit Large vs. T Rowe Price |
Catalyst Exceed vs. Dreyfus Technology Growth | Catalyst Exceed vs. Janus Global Technology | Catalyst Exceed vs. Science Technology Fund | Catalyst Exceed vs. Blackrock Science Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |