Correlation Between Global Allocation and Siit Large
Can any of the company-specific risk be diversified away by investing in both Global Allocation and Siit Large 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 Global Allocation and Siit Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Allocation 2575 and Siit Large Cap, you can compare the effects of market volatilities on Global Allocation and Siit Large 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 Global Allocation with a short position of Siit Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Allocation and Siit Large.
Diversification Opportunities for Global Allocation and Siit Large
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Siit is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Global Allocation 2575 and Siit Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Large Cap and Global Allocation 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 Global Allocation 2575 are associated (or correlated) with Siit Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Large Cap has no effect on the direction of Global Allocation i.e., Global Allocation and Siit Large go up and down completely randomly.
Pair Corralation between Global Allocation and Siit Large
Assuming the 90 days horizon Global Allocation is expected to generate 2.38 times less return on investment than Siit Large. But when comparing it to its historical volatility, Global Allocation 2575 is 3.94 times less risky than Siit Large. It trades about 0.16 of its potential returns per unit of risk. Siit Large Cap is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 21,409 in Siit Large Cap on August 17, 2025 and sell it today you would earn a total of 947.00 from holding Siit Large Cap or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Allocation 2575 vs. Siit Large Cap
Performance |
| Timeline |
| Global Allocation 2575 |
| Siit Large Cap |
Global Allocation and Siit Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Allocation and Siit Large
The main advantage of trading using opposite Global Allocation and Siit Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Allocation position performs unexpectedly, Siit Large 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 Siit Large will offset losses from the drop in Siit Large's long position.| Global Allocation vs. Intal High Relative | Global Allocation vs. Dfa International | Global Allocation vs. Dfa Inflation Protected | Global Allocation vs. Dfa International Small |
| Siit Large vs. Equity Growth Fund | Siit Large vs. Nationwide Sp 500 | Siit Large vs. Simt Large Cap | Siit Large vs. Value Line Mid |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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