Correlation Between Siit Dynamic and Equity Growth
Can any of the company-specific risk be diversified away by investing in both Siit Dynamic and Equity Growth 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 Dynamic and Equity Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Dynamic Asset and Equity Growth Fund, you can compare the effects of market volatilities on Siit Dynamic and Equity Growth 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 Dynamic with a short position of Equity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Dynamic and Equity Growth.
Diversification Opportunities for Siit Dynamic and Equity Growth
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Equity is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Siit Dynamic Asset and Equity Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Growth and Siit Dynamic 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 Dynamic Asset are associated (or correlated) with Equity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Growth has no effect on the direction of Siit Dynamic i.e., Siit Dynamic and Equity Growth go up and down completely randomly.
Pair Corralation between Siit Dynamic and Equity Growth
Assuming the 90 days horizon Siit Dynamic is expected to generate 1.15 times less return on investment than Equity Growth. In addition to that, Siit Dynamic is 1.0 times more volatile than Equity Growth Fund. It trades about 0.12 of its total potential returns per unit of risk. Equity Growth Fund is currently generating about 0.14 per unit of volatility. If you would invest 3,591 in Equity Growth Fund on July 26, 2025 and sell it today you would earn a total of 224.00 from holding Equity Growth Fund or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Dynamic Asset vs. Equity Growth Fund
Performance |
| Timeline |
| Siit Dynamic Asset |
| Equity Growth |
Siit Dynamic and Equity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Dynamic and Equity Growth
The main advantage of trading using opposite Siit Dynamic and Equity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Dynamic position performs unexpectedly, Equity Growth 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 Equity Growth will offset losses from the drop in Equity Growth's long position.| Siit Dynamic vs. Vanguard Total Stock | Siit Dynamic vs. Vanguard 500 Index | Siit Dynamic vs. Vanguard Total Stock | Siit Dynamic vs. Vanguard Total Stock |
| Equity Growth vs. Income Growth Fund | Equity Growth vs. Income Growth Fund | Equity Growth vs. Siit Large Cap | Equity Growth vs. Fam Value 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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