Correlation Between Siit Emerging and Siit Small
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Siit 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 Emerging and Siit Small 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 Siit Small Cap, you can compare the effects of market volatilities on Siit Emerging and Siit 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 Emerging with a short position of Siit Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Siit Small.
Diversification Opportunities for Siit Emerging and Siit Small
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Siit is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Siit Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Small Cap 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 Siit Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Small Cap has no effect on the direction of Siit Emerging i.e., Siit Emerging and Siit Small go up and down completely randomly.
Pair Corralation between Siit Emerging and Siit Small
Assuming the 90 days horizon Siit Emerging is expected to generate 2.32 times less return on investment than Siit Small. But when comparing it to its historical volatility, Siit Emerging Markets is 4.27 times less risky than Siit Small. It trades about 0.37 of its potential returns per unit of risk. Siit Small Cap is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,036 in Siit Small Cap on June 1, 2025 and sell it today you would earn a total of 144.00 from holding Siit Small Cap or generate 13.9% 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. Siit Small Cap
Performance |
| Timeline |
| Siit Emerging Markets |
| Siit Small Cap |
Siit Emerging and Siit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Siit Small
The main advantage of trading using opposite Siit Emerging and Siit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Siit 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 Siit Small will offset losses from the drop in Siit Small's long position.| Siit Emerging vs. Small Cap Stock | Siit Emerging vs. Touchstone Funds Group | Siit Emerging vs. Gmo Quality Fund | Siit Emerging vs. T Rowe Price |
| Siit Small vs. Simt Multi Asset Accumulation | Siit Small vs. Saat Market Growth | Siit Small vs. Simt Real Return | Siit Small vs. Simt 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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