Correlation Between Gmo International and Siit Equity
Can any of the company-specific risk be diversified away by investing in both Gmo International and Siit Equity 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 Gmo International and Siit Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo International Equity and Siit Equity Factor, you can compare the effects of market volatilities on Gmo International and Siit Equity 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 Gmo International with a short position of Siit Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo International and Siit Equity.
Diversification Opportunities for Gmo International and Siit Equity
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GMO and Siit is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gmo International Equity and Siit Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Equity Factor and Gmo International 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 Gmo International Equity are associated (or correlated) with Siit Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Equity Factor has no effect on the direction of Gmo International i.e., Gmo International and Siit Equity go up and down completely randomly.
Pair Corralation between Gmo International and Siit Equity
Assuming the 90 days horizon Gmo International Equity is expected to generate 1.11 times more return on investment than Siit Equity. However, Gmo International is 1.11 times more volatile than Siit Equity Factor. It trades about 0.18 of its potential returns per unit of risk. Siit Equity Factor is currently generating about 0.2 per unit of risk. If you would invest 3,320 in Gmo International Equity on June 10, 2025 and sell it today you would earn a total of 266.00 from holding Gmo International Equity or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo International Equity vs. Siit Equity Factor
Performance |
| Timeline |
| Gmo International Equity |
| Siit Equity Factor |
Gmo International and Siit Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo International and Siit Equity
The main advantage of trading using opposite Gmo International and Siit Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo International position performs unexpectedly, Siit Equity 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 Equity will offset losses from the drop in Siit Equity's long position.| Gmo International vs. Invesco Global Health | Gmo International vs. Alger Health Sciences | Gmo International vs. Alphacentric Lifesci Healthcare | Gmo International vs. Tekla Healthcare Investors |
| Siit Equity vs. Simt Multi Asset Accumulation | Siit Equity vs. Saat Market Growth | Siit Equity vs. Simt Real Return | Siit Equity vs. Simt Small Cap |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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