Correlation Between Siit Emerging and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Emerging Markets 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 Emerging Markets 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 Emerging Markets Fund, you can compare the effects of market volatilities on Siit Emerging and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Emerging Markets.
Diversification Opportunities for Siit Emerging and Emerging Markets
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Emerging is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Emerging Markets Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of Siit Emerging i.e., Siit Emerging and Emerging Markets go up and down completely randomly.
Pair Corralation between Siit Emerging and Emerging Markets
Assuming the 90 days horizon Siit Emerging Markets is expected to generate 0.73 times more return on investment than Emerging Markets. However, Siit Emerging Markets is 1.37 times less risky than Emerging Markets. It trades about 0.07 of its potential returns per unit of risk. Emerging Markets Fund is currently generating about 0.05 per unit of risk. If you would invest 986.00 in Siit Emerging Markets on September 14, 2024 and sell it today you would earn a total of 31.00 from holding Siit Emerging Markets or generate 3.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Siit Emerging Markets vs. Emerging Markets Fund
Performance |
Timeline |
Siit Emerging Markets |
Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Siit Emerging and Emerging Markets Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siit Emerging and Emerging Markets
The main advantage of trading using opposite Siit Emerging and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.Siit Emerging vs. Oppenheimer Gold Special | Siit Emerging vs. Sprott Gold Equity | Siit Emerging vs. Great West Goldman Sachs | Siit Emerging vs. International Investors Gold |
Emerging Markets vs. Baron Health Care | Emerging Markets vs. Baillie Gifford Health | Emerging Markets vs. Alphacentric Lifesci Healthcare | Emerging Markets vs. Blackrock Health Sciences |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |