Correlation Between Siit Large and Defensive Market
Can any of the company-specific risk be diversified away by investing in both Siit Large and Defensive Market 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 Large and Defensive Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Large Cap and Defensive Market Strategies, you can compare the effects of market volatilities on Siit Large and Defensive Market 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 Large with a short position of Defensive Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Defensive Market.
Diversification Opportunities for Siit Large and Defensive Market
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Siit and Defensive is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Defensive Market Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defensive Market Str and Siit Large 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 Large Cap are associated (or correlated) with Defensive Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defensive Market Str has no effect on the direction of Siit Large i.e., Siit Large and Defensive Market go up and down completely randomly.
Pair Corralation between Siit Large and Defensive Market
Assuming the 90 days horizon Siit Large Cap is expected to generate 1.77 times more return on investment than Defensive Market. However, Siit Large is 1.77 times more volatile than Defensive Market Strategies. It trades about 0.2 of its potential returns per unit of risk. Defensive Market Strategies is currently generating about 0.2 per unit of risk. If you would invest 19,986 in Siit Large Cap on June 7, 2025 and sell it today you would earn a total of 1,521 from holding Siit Large Cap or generate 7.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Defensive Market Strategies
Performance |
| Timeline |
| Siit Large Cap |
| Defensive Market Str |
Siit Large and Defensive Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Defensive Market
The main advantage of trading using opposite Siit Large and Defensive Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Defensive Market 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 Defensive Market will offset losses from the drop in Defensive Market's long position.| Siit Large vs. Siit Dynamic Asset | Siit Large vs. Columbia Large Cap | Siit Large vs. Janus Growth And | Siit Large vs. Nationwide Sp 500 |
| Defensive Market vs. Perkins Small Cap | Defensive Market vs. Queens Road Small | Defensive Market vs. Fidelity Small Cap | Defensive Market vs. Heartland Value Plus |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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