Correlation Between Siit Emerging and Catalystwarrington

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

By analyzing existing cross correlation between Siit Emerging Markets and Catalystwarrington Strategic Program, you can compare the effects of market volatilities on Siit Emerging and Catalystwarrington 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 Emerging with a short position of Catalystwarrington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Catalystwarrington.

Diversification Opportunities for Siit Emerging and Catalystwarrington

0.67

Correlation Coefficient

Siit Emerging  Catalystwarrington

Poor diversification

The 3 months correlation between Siit and Catalystwarrington is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Catalystwarrington Strategic P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystwarrington and Siit Emerging 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 Emerging Markets are associated (or correlated) with Catalystwarrington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystwarrington has no effect on the direction of Siit Emerging i.e., Siit Emerging and Catalystwarrington go up and down completely randomly.

Pair Corralation between Siit Emerging and Catalystwarrington

Assuming the 90 days horizon Siit Emerging Markets is expected to under-perform the Catalystwarrington. In addition to that, Siit Emerging is 1.85 times more volatile than Catalystwarrington Strategic Program. It trades about -0.34 of its total potential returns per unit of risk. Catalystwarrington Strategic Program is currently generating about -0.19 per unit of volatility. If you would invest  948.00  in Catalystwarrington Strategic Program on October 8, 2024 and sell it today you would lose (25.00) from holding Catalystwarrington Strategic Program or give up 2.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Siit Emerging Markets  vs.  Catalystwarrington Strategic P

Siit Emerging Markets

Risk-Adjusted Performance

0 of 100

Very Weak

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

Catalystwarrington

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Catalystwarrington Strategic Program has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Catalystwarrington 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 Emerging and Catalystwarrington

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

The idea behind Siit Emerging Markets and Catalystwarrington Strategic Program 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.