Correlation Between SITC International and SITC International
Can any of the company-specific risk be diversified away by investing in both SITC International and SITC International 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 SITC International and SITC International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SITC International Holdings and SITC International Holdings, you can compare the effects of market volatilities on SITC International and SITC International 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 SITC International with a short position of SITC International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SITC International and SITC International.
Diversification Opportunities for SITC International and SITC International
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SITC and SITC is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding SITC International Holdings and SITC International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITC International and SITC International 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 SITC International Holdings are associated (or correlated) with SITC International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITC International has no effect on the direction of SITC International i.e., SITC International and SITC International go up and down completely randomly.
Pair Corralation between SITC International and SITC International
Assuming the 90 days horizon SITC International Holdings is expected to generate 1.14 times more return on investment than SITC International. However, SITC International is 1.14 times more volatile than SITC International Holdings. It trades about 0.1 of its potential returns per unit of risk. SITC International Holdings is currently generating about 0.11 per unit of risk. If you would invest 297.00 in SITC International Holdings on July 26, 2025 and sell it today you would earn a total of 66.00 from holding SITC International Holdings or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SITC International Holdings vs. SITC International Holdings
Performance |
| Timeline |
| SITC International |
| SITC International |
SITC International and SITC International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SITC International and SITC International
The main advantage of trading using opposite SITC International and SITC International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SITC International position performs unexpectedly, SITC International 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 SITC International will offset losses from the drop in SITC International's long position.| SITC International vs. Kawasaki Kisen Kaisha | SITC International vs. COSCO SHIPPING Energy | SITC International vs. Mitsui OSK Lines | SITC International vs. Orient Overseas International |
| SITC International vs. Kawasaki Kisen Kaisha | SITC International vs. COSCO SHIPPING Energy | SITC International vs. Mitsui OSK Lines | SITC International vs. Orient Overseas International |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |