Correlation Between Sit Dividend and Amer Beacon
Can any of the company-specific risk be diversified away by investing in both Sit Dividend and Amer Beacon 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 Sit Dividend and Amer Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Dividend Growth and Amer Beacon Ark, you can compare the effects of market volatilities on Sit Dividend and Amer Beacon 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 Sit Dividend with a short position of Amer Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Dividend and Amer Beacon.
Diversification Opportunities for Sit Dividend and Amer Beacon
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sit and Amer is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sit Dividend Growth and Amer Beacon Ark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Beacon Ark and Sit Dividend 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 Sit Dividend Growth are associated (or correlated) with Amer Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Beacon Ark has no effect on the direction of Sit Dividend i.e., Sit Dividend and Amer Beacon go up and down completely randomly.
Pair Corralation between Sit Dividend and Amer Beacon
Assuming the 90 days horizon Sit Dividend Growth is expected to generate 0.27 times more return on investment than Amer Beacon. However, Sit Dividend Growth is 3.72 times less risky than Amer Beacon. It trades about 0.12 of its potential returns per unit of risk. Amer Beacon Ark is currently generating about 0.02 per unit of risk. If you would invest 1,713 in Sit Dividend Growth on August 20, 2025 and sell it today you would earn a total of 76.00 from holding Sit Dividend Growth or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Dividend Growth vs. Amer Beacon Ark
Performance |
| Timeline |
| Sit Dividend Growth |
| Amer Beacon Ark |
Sit Dividend and Amer Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Dividend and Amer Beacon
The main advantage of trading using opposite Sit Dividend and Amer Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Dividend position performs unexpectedly, Amer Beacon 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 Amer Beacon will offset losses from the drop in Amer Beacon's long position.| Sit Dividend vs. Sit Dividend Growth | Sit Dividend vs. Summit Global Investments | Sit Dividend vs. Columbia Adaptive Risk | Sit Dividend vs. Ashmore Emerging Markets |
| Amer Beacon vs. Ashmore Emerging Markets | Amer Beacon vs. Ashmore Emerging Markets | Amer Beacon vs. Summit Global Investments | Amer Beacon vs. Royce Small Cap Value |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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