Correlation Between Siit Emerging and Catalyst/warrington

Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Catalyst/warrington 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 Catalyst/warrington 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 Catalyst/warrington 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 Catalyst/warrington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Catalyst/warrington.

Diversification Opportunities for Siit Emerging and Catalyst/warrington

0.33

Correlation Coefficient

Siit Emerging  Catalyst/warrington

Weak diversification

The 3 months correlation between Siit and Catalyst/warrington is 0.33. 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 Catalyst/warrington 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 Catalyst/warrington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/warrington has no effect on the direction of Siit Emerging i.e., Siit Emerging and Catalyst/warrington go up and down completely randomly.

Pair Corralation between Siit Emerging and Catalyst/warrington

Assuming the 90 days horizon Siit Emerging Markets is expected to generate 11.52 times more return on investment than Catalyst/warrington. However, Siit Emerging is 11.52 times more volatile than Catalystwarrington Strategic Program. It trades about 0.06 of its potential returns per unit of risk. Catalystwarrington Strategic Program is currently generating about 0.2 per unit of risk. If you would invest  937.00  in Siit Emerging Markets on December 25, 2024 and sell it today you would earn a total of  32.00  from holding Siit Emerging Markets or generate 3.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Siit Emerging Markets  vs.  Catalystwarrington Strategic P

Siit Emerging Markets

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Emerging Markets are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Siit Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Catalyst/warrington

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystwarrington Strategic Program are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Catalyst/warrington 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 Catalyst/warrington

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

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.