Correlation Between Siit Small and Rational Special
Can any of the company-specific risk be diversified away by investing in both Siit Small and Rational Special 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 Rational Special 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 Rational Special Situations, you can compare the effects of market volatilities on Siit Small and Rational Special 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 Rational Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Rational Special.
Diversification Opportunities for Siit Small and Rational Special
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siit and Rational is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Cap and Rational Special Situations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rational Special Sit 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 Rational Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rational Special Sit has no effect on the direction of Siit Small i.e., Siit Small and Rational Special go up and down completely randomly.
Pair Corralation between Siit Small and Rational Special
Assuming the 90 days horizon Siit Small Cap is expected to generate 9.23 times more return on investment than Rational Special. However, Siit Small is 9.23 times more volatile than Rational Special Situations. It trades about 0.2 of its potential returns per unit of risk. Rational Special Situations is currently generating about 0.15 per unit of risk. If you would invest 1,050 in Siit Small Cap on June 13, 2025 and sell it today you would earn a total of 137.00 from holding Siit Small Cap or generate 13.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Cap vs. Rational Special Situations
Performance |
| Timeline |
| Siit Small Cap |
| Rational Special Sit |
Siit Small and Rational Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Rational Special
The main advantage of trading using opposite Siit Small and Rational Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Rational Special 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 Rational Special will offset losses from the drop in Rational Special's long position.| Siit Small vs. T Rowe Price | Siit Small vs. Fidelity Capital Income | Siit Small vs. Neuberger Berman Income | Siit Small vs. Msift High Yield |
| Rational Special vs. Omni Small Cap Value | Rational Special vs. Fidelity Small Cap | Rational Special vs. Small Cap Value Fund | Rational Special vs. Lsv 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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