Correlation Between Siit Small and Scout Small
Can any of the company-specific risk be diversified away by investing in both Siit Small and Scout Small 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 Scout Small 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 Scout Small Cap, you can compare the effects of market volatilities on Siit Small and Scout Small 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 Scout Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Scout Small.
Diversification Opportunities for Siit Small and Scout Small
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Scout is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Cap and Scout Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout Small Cap 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 Scout Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout Small Cap has no effect on the direction of Siit Small i.e., Siit Small and Scout Small go up and down completely randomly.
Pair Corralation between Siit Small and Scout Small
Assuming the 90 days horizon Siit Small Cap is expected to generate 0.94 times more return on investment than Scout Small. However, Siit Small Cap is 1.07 times less risky than Scout Small. It trades about 0.21 of its potential returns per unit of risk. Scout Small Cap is currently generating about 0.2 per unit of risk. If you would invest 979.00 in Siit Small Cap on April 24, 2025 and sell it today you would earn a total of 134.00 from holding Siit Small Cap or generate 13.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Cap vs. Scout Small Cap
Performance |
| Timeline |
| Siit Small Cap |
| Scout Small Cap |
Siit Small and Scout Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Scout Small
The main advantage of trading using opposite Siit Small and Scout Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Scout Small 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 Scout Small will offset losses from the drop in Scout Small's long position.| Siit Small vs. Highland Longshort Healthcare | Siit Small vs. Live Oak Health | Siit Small vs. Deutsche Health And | Siit Small vs. Fidelity Advisor Health |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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