Correlation Between Pace International and Siit Core
Can any of the company-specific risk be diversified away by investing in both Pace International 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 International 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 International Emerging and Siit E Fixed, you can compare the effects of market volatilities on Pace International 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 International with a short position of Siit Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace International and Siit Core.
Diversification Opportunities for Pace International and Siit Core
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pace and Siit is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Pace International Emerging 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 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 Pace International Emerging 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 International i.e., Pace International and Siit Core go up and down completely randomly.
Pair Corralation between Pace International and Siit Core
Assuming the 90 days horizon Pace International Emerging is expected to generate 2.45 times more return on investment than Siit Core. However, Pace International is 2.45 times more volatile than Siit E Fixed. It trades about 0.17 of its potential returns per unit of risk. Siit E Fixed is currently generating about 0.16 per unit of risk. If you would invest 1,467 in Pace International Emerging on June 7, 2025 and sell it today you would earn a total of 107.00 from holding Pace International Emerging or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace International Emerging vs. Siit E Fixed
Performance |
| Timeline |
| Pace International |
| Siit E Fixed |
Pace International and Siit Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace International and Siit Core
The main advantage of trading using opposite Pace International and Siit Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace International 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 International vs. Target Retirement 2040 | Pace International vs. Voya Target Retirement | Pace International vs. Qs Moderate Growth | Pace International vs. Sierra E Retirement |
| Siit Core vs. Tax Managed Mid Small | Siit Core vs. Qs Small Capitalization | Siit Core vs. Siit Small Cap | Siit Core vs. Aqr 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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