Correlation Between Siit Small and Payden Us
Can any of the company-specific risk be diversified away by investing in both Siit Small and Payden Us 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 Small and Payden Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Small Cap and Payden Government Fund, you can compare the effects of market volatilities on Siit Small and Payden Us 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 Small with a short position of Payden Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Payden Us.
Diversification Opportunities for Siit Small and Payden Us
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Payden is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Cap and Payden Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Government and Siit Small 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 Small Cap are associated (or correlated) with Payden Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Government has no effect on the direction of Siit Small i.e., Siit Small and Payden Us go up and down completely randomly.
Pair Corralation between Siit Small and Payden Us
Assuming the 90 days horizon Siit Small Cap is expected to generate 6.43 times more return on investment than Payden Us. However, Siit Small is 6.43 times more volatile than Payden Government Fund. It trades about 0.21 of its potential returns per unit of risk. Payden Government Fund is currently generating about 0.13 per unit of risk. If you would invest 1,034 in Siit Small Cap on May 30, 2025 and sell it today you would earn a total of 150.00 from holding Siit Small Cap or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Cap vs. Payden Government Fund
Performance |
| Timeline |
| Siit Small Cap |
| Payden Government |
Siit Small and Payden Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Payden Us
The main advantage of trading using opposite Siit Small and Payden Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Payden Us 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 Payden Us will offset losses from the drop in Payden Us' long position.| Siit Small vs. Elfun Diversified Fund | Siit Small vs. Madison Diversified Income | Siit Small vs. Global Diversified Income | Siit Small vs. Aqr Diversified Arbitrage |
| Payden Us vs. Payden Absolute Return | Payden Us vs. Payden Emerging Markets | Payden Us vs. Payden E Bond | Payden Us vs. Payden California Municipal |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |