Correlation Between Siit Emerging and Federated Emerging
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Federated Emerging 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 Emerging and Federated Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Federated Emerging Market, you can compare the effects of market volatilities on Siit Emerging and Federated Emerging 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 Emerging with a short position of Federated Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Federated Emerging.
Diversification Opportunities for Siit Emerging and Federated Emerging
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Siit and Federated is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Federated Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Emerging Market and Siit Emerging 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 Emerging Markets are associated (or correlated) with Federated Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Emerging Market has no effect on the direction of Siit Emerging i.e., Siit Emerging and Federated Emerging go up and down completely randomly.
Pair Corralation between Siit Emerging and Federated Emerging
Assuming the 90 days horizon Siit Emerging Markets is expected to generate 0.99 times more return on investment than Federated Emerging. However, Siit Emerging Markets is 1.01 times less risky than Federated Emerging. It trades about 0.35 of its potential returns per unit of risk. Federated Emerging Market is currently generating about 0.34 per unit of risk. If you would invest 878.00 in Siit Emerging Markets on July 20, 2025 and sell it today you would earn a total of 47.00 from holding Siit Emerging Markets or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Federated Emerging Market
Performance |
| Timeline |
| Siit Emerging Markets |
| Federated Emerging Market |
Siit Emerging and Federated Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Federated Emerging
The main advantage of trading using opposite Siit Emerging and Federated Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Federated Emerging 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 Federated Emerging will offset losses from the drop in Federated Emerging's long position.| Siit Emerging vs. College Retirement Equities | Siit Emerging vs. Invesco Short Duration | Siit Emerging vs. Goldman Sachs Managed | Siit Emerging vs. Loomis Sayles Inflation |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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