Correlation Between Siit High and Aperture New

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

By analyzing existing cross correlation between Siit High Yield and Aperture New World, you can compare the effects of market volatilities on Siit High and Aperture New 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 High with a short position of Aperture New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Aperture New.

Diversification Opportunities for Siit High and Aperture New

0.02

Correlation Coefficient

Siit High  Aperture New

Significant diversification

The 3 months correlation between Siit and Aperture is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Aperture New World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperture New World and Siit High 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 High Yield are associated (or correlated) with Aperture New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperture New World has no effect on the direction of Siit High i.e., Siit High and Aperture New go up and down completely randomly.

Pair Corralation between Siit High and Aperture New

If you would invest  703.00  in Siit High Yield on October 26, 2024 and sell it today you would earn a total of  14.00  from holding Siit High Yield or generate 1.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Siit High Yield  vs.  Aperture New World

Siit High Yield

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Siit High Yield are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aperture New World

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aperture New World has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Aperture New 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 High and Aperture New

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

The idea behind Siit High Yield and Aperture New World 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.