Correlation Between Siit Large and Global Hard
Can any of the company-specific risk be diversified away by investing in both Siit Large and Global Hard 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 Global Hard 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 Global Hard Assets, you can compare the effects of market volatilities on Siit Large and Global Hard 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 Global Hard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Global Hard.
Diversification Opportunities for Siit Large and Global Hard
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Global is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Global Hard Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Hard Assets 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 Global Hard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Hard Assets has no effect on the direction of Siit Large i.e., Siit Large and Global Hard go up and down completely randomly.
Pair Corralation between Siit Large and Global Hard
Assuming the 90 days horizon Siit Large is expected to generate 2.53 times less return on investment than Global Hard. But when comparing it to its historical volatility, Siit Large Cap is 1.09 times less risky than Global Hard. It trades about 0.15 of its potential returns per unit of risk. Global Hard Assets is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 4,442 in Global Hard Assets on June 9, 2025 and sell it today you would earn a total of 212.00 from holding Global Hard Assets or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Global Hard Assets
Performance |
| Timeline |
| Siit Large Cap |
| Global Hard Assets |
Siit Large and Global Hard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Global Hard
The main advantage of trading using opposite Siit Large and Global Hard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Global Hard 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 Global Hard will offset losses from the drop in Global Hard's long position.| Siit Large vs. Simt Multi Asset Accumulation | Siit Large vs. Saat Market Growth | Siit Large vs. Simt Real Return | Siit Large vs. Simt Small Cap |
| Global Hard vs. Oklahoma College Savings | Global Hard vs. Ab Bond Inflation | Global Hard vs. T Rowe Price | Global Hard vs. Ms Global Fixed |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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