Correlation Between Siit Large and Deutsche California
Can any of the company-specific risk be diversified away by investing in both Siit Large and Deutsche California 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 Deutsche California 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 Deutsche California Tax Free, you can compare the effects of market volatilities on Siit Large and Deutsche California 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 Deutsche California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Deutsche California.
Diversification Opportunities for Siit Large and Deutsche California
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Deutsche is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Deutsche California Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche California Tax 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 Deutsche California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche California Tax has no effect on the direction of Siit Large i.e., Siit Large and Deutsche California go up and down completely randomly.
Pair Corralation between Siit Large and Deutsche California
Assuming the 90 days horizon Siit Large Cap is expected to generate 4.5 times more return on investment than Deutsche California. However, Siit Large is 4.5 times more volatile than Deutsche California Tax Free. It trades about 0.13 of its potential returns per unit of risk. Deutsche California Tax Free is currently generating about 0.42 per unit of risk. If you would invest 21,348 in Siit Large Cap on September 2, 2025 and sell it today you would earn a total of 1,410 from holding Siit Large Cap or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Deutsche California Tax Free
Performance |
| Timeline |
| Siit Large Cap |
| Deutsche California Tax |
Siit Large and Deutsche California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Deutsche California
The main advantage of trading using opposite Siit Large and Deutsche California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Deutsche California 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 Deutsche California will offset losses from the drop in Deutsche California's long position.| Siit Large vs. Franklin Mutual Global | Siit Large vs. Ab Global Risk | Siit Large vs. T Rowe Price | Siit Large vs. The Hartford Global |
| Deutsche California vs. Deutsche Gnma Fund | Deutsche California vs. Deutsche Short Term Municipal | Deutsche California vs. Deutsche Short Term Municipal | Deutsche California vs. Deutsche Science And |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |