Correlation Between Siit Small and Ab Small
Can any of the company-specific risk be diversified away by investing in both Siit Small and Ab Small 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 Small and Ab Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Small Mid and Ab Small Cap, you can compare the effects of market volatilities on Siit Small and Ab Small 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 Small with a short position of Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Ab Small.
Diversification Opportunities for Siit Small and Ab Small
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and SCYVX is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small Cap and Siit Small 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 Small Mid are associated (or correlated) with Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Siit Small i.e., Siit Small and Ab Small go up and down completely randomly.
Pair Corralation between Siit Small and Ab Small
Assuming the 90 days horizon Siit Small Mid is expected to generate 0.94 times more return on investment than Ab Small. However, Siit Small Mid is 1.07 times less risky than Ab Small. It trades about -0.08 of its potential returns per unit of risk. Ab Small Cap is currently generating about -0.11 per unit of risk. If you would invest 1,016 in Siit Small Mid on December 27, 2024 and sell it today you would lose (52.00) from holding Siit Small Mid or give up 5.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Siit Small Mid vs. Ab Small Cap
Performance |
Timeline |
Siit Small Mid |
Ab Small Cap |
Siit Small and Ab Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siit Small and Ab Small
The main advantage of trading using opposite Siit Small and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Ab Small 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 Ab Small will offset losses from the drop in Ab Small's long position.Siit Small vs. Aqr Global Equity | Siit Small vs. Barings Global Floating | Siit Small vs. Gmo Global Equity | Siit Small vs. Doubleline Global Bond |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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