Correlation Between Siit Global and Dfa Target

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

By analyzing existing cross correlation between Siit Global Managed and Dfa Target Value, you can compare the effects of market volatilities on Siit Global and Dfa Target 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 Global with a short position of Dfa Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Dfa Target.

Diversification Opportunities for Siit Global and Dfa Target

-0.77

Correlation Coefficient

Siit Global  Dfa Target

Pay attention - limited upside

The 3 months correlation between Siit and Dfa is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Dfa Target Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Target Value and Siit Global 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 Global Managed are associated (or correlated) with Dfa Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Target Value has no effect on the direction of Siit Global i.e., Siit Global and Dfa Target go up and down completely randomly.

Pair Corralation between Siit Global and Dfa Target

If you would invest  2,803  in Dfa Target Value on October 5, 2024 and sell it today you would earn a total of  0.00  from holding Dfa Target Value or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	5.0%
Values	Daily Returns

Siit Global Managed  vs.  Dfa Target Value

Siit Global Managed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siit Global Managed has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Dfa Target Value

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Siit Global and Dfa Target

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

The idea behind Siit Global Managed and Dfa Target Value 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.