Correlation Between Stet California and Siit Opportunistic

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

By analyzing existing cross correlation between Stet California Municipal and Siit Opportunistic Income, you can compare the effects of market volatilities on Stet California and Siit Opportunistic 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 Stet California with a short position of Siit Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stet California and Siit Opportunistic.

Diversification Opportunities for Stet California and Siit Opportunistic

0.0

Correlation Coefficient

Stet California  Siit Opportunistic

Pay attention - limited upside

The 3 months correlation between STET and Siit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stet California Municipal and Siit Opportunistic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Opportunistic Income and Stet California 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 Stet California Municipal are associated (or correlated) with Siit Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Opportunistic Income has no effect on the direction of Stet California i.e., Stet California and Siit Opportunistic go up and down completely randomly.

Pair Corralation between Stet California and Siit Opportunistic

If you would invest  749.00  in Siit Opportunistic Income on September 3, 2024 and sell it today you would earn a total of  58.00  from holding Siit Opportunistic Income or generate 7.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.44%
Values	Daily Returns

Stet California Municipal  vs.  Siit Opportunistic Income

Stet California Municipal

Risk-Adjusted Performance

0 of 100

Insignificant

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

Siit Opportunistic Income

Risk-Adjusted Performance

35 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Opportunistic Income are ranked lower than 35 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit Opportunistic is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Stet California and Siit Opportunistic

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

The idea behind Stet California Municipal and Siit Opportunistic Income 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.

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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.