Correlation Between Pace Strategic and Siit Core
Can any of the company-specific risk be diversified away by investing in both Pace Strategic and Siit Core 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 Pace Strategic and Siit Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace Strategic Fixed and Siit E Fixed, you can compare the effects of market volatilities on Pace Strategic and Siit Core 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 Pace Strategic with a short position of Siit Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Strategic and Siit Core.
Diversification Opportunities for Pace Strategic and Siit Core
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Pace and Siit is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Pace Strategic Fixed and Siit E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit E Fixed and Pace Strategic 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 Pace Strategic Fixed are associated (or correlated) with Siit Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit E Fixed has no effect on the direction of Pace Strategic i.e., Pace Strategic and Siit Core go up and down completely randomly.
Pair Corralation between Pace Strategic and Siit Core
Assuming the 90 days horizon Pace Strategic Fixed is expected to generate 0.8 times more return on investment than Siit Core. However, Pace Strategic Fixed is 1.25 times less risky than Siit Core. It trades about 0.19 of its potential returns per unit of risk. Siit E Fixed is currently generating about 0.14 per unit of risk. If you would invest 1,152 in Pace Strategic Fixed on June 3, 2025 and sell it today you would earn a total of 33.00 from holding Pace Strategic Fixed or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace Strategic Fixed vs. Siit E Fixed
Performance |
| Timeline |
| Pace Strategic Fixed |
| Siit E Fixed |
Pace Strategic and Siit Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace Strategic and Siit Core
The main advantage of trading using opposite Pace Strategic and Siit Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace Strategic position performs unexpectedly, Siit Core 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 Core will offset losses from the drop in Siit Core's long position.| Pace Strategic vs. Pace Smallmedium Value | Pace Strategic vs. Pace International Equity | Pace Strategic vs. Ubs Allocation Fund | Pace Strategic vs. Ubs Allocation Fund |
| Siit Core vs. Auer Growth Fund | Siit Core vs. T Rowe Price | Siit Core vs. Praxis Genesis Growth | Siit Core vs. Qs Growth Fund |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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