Correlation Between Siit Equity and Largecap Value
Can any of the company-specific risk be diversified away by investing in both Siit Equity and Largecap Value 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 Equity and Largecap Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Equity Factor and Largecap Value Fund, you can compare the effects of market volatilities on Siit Equity and Largecap Value 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 Equity with a short position of Largecap Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Equity and Largecap Value.
Diversification Opportunities for Siit Equity and Largecap Value
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Largecap is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Siit Equity Factor and Largecap Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Largecap Value and Siit Equity 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 Equity Factor are associated (or correlated) with Largecap Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Largecap Value has no effect on the direction of Siit Equity i.e., Siit Equity and Largecap Value go up and down completely randomly.
Pair Corralation between Siit Equity and Largecap Value
Assuming the 90 days horizon Siit Equity Factor is expected to generate 0.99 times more return on investment than Largecap Value. However, Siit Equity Factor is 1.01 times less risky than Largecap Value. It trades about 0.2 of its potential returns per unit of risk. Largecap Value Fund is currently generating about 0.18 per unit of risk. If you would invest 1,476 in Siit Equity Factor on June 5, 2025 and sell it today you would earn a total of 115.00 from holding Siit Equity Factor or generate 7.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Equity Factor vs. Largecap Value Fund
Performance |
| Timeline |
| Siit Equity Factor |
| Largecap Value |
Siit Equity and Largecap Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Equity and Largecap Value
The main advantage of trading using opposite Siit Equity and Largecap Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Equity position performs unexpectedly, Largecap Value 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 Largecap Value will offset losses from the drop in Largecap Value's long position.| Siit Equity vs. Barings Active Short | Siit Equity vs. Leader Short Term Bond | Siit Equity vs. Lord Abbett Short | Siit Equity vs. Blackrock Global Longshort |
| Largecap Value vs. Fidelity Large Cap | Largecap Value vs. Knights Of Umbus | Largecap Value vs. Old Westbury Large | Largecap Value vs. Virtus Nfj Large 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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