Correlation Between Sit Us and Select Fund
Can any of the company-specific risk be diversified away by investing in both Sit Us and Select Fund 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 Sit Us and Select Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Government Securities and Select Fund C, you can compare the effects of market volatilities on Sit Us and Select Fund 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 Sit Us with a short position of Select Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Us and Select Fund.
Diversification Opportunities for Sit Us and Select Fund
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sit and Select is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sit Government Securities and Select Fund C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Fund C and Sit Us 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 Sit Government Securities are associated (or correlated) with Select Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Fund C has no effect on the direction of Sit Us i.e., Sit Us and Select Fund go up and down completely randomly.
Pair Corralation between Sit Us and Select Fund
Assuming the 90 days horizon Sit Us is expected to generate 3.76 times less return on investment than Select Fund. But when comparing it to its historical volatility, Sit Government Securities is 3.91 times less risky than Select Fund. It trades about 0.19 of its potential returns per unit of risk. Select Fund C is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 8,886 in Select Fund C on June 1, 2025 and sell it today you would earn a total of 849.00 from holding Select Fund C or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Sit Government Securities vs. Select Fund C
Performance |
| Timeline |
| Sit Government Securities |
| Select Fund C |
Sit Us and Select Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Us and Select Fund
The main advantage of trading using opposite Sit Us and Select Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Us position performs unexpectedly, Select Fund 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 Select Fund will offset losses from the drop in Select Fund's long position.| Sit Us vs. Sit Global Dividend | Sit Us vs. Sit Small Cap | Sit Us vs. Sit Small Cap | Sit Us vs. Sit Mid Cap |
| Select Fund vs. Global Diversified Income | Select Fund vs. Stone Ridge Diversified | Select Fund vs. Tax Free Conservative Income | Select Fund vs. Invesco Diversified Dividend |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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