Correlation Between Sit Us and Sit Small
Can any of the company-specific risk be diversified away by investing in both Sit Us and Sit 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 Sit Us and Sit Small 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 Sit Small Cap, you can compare the effects of market volatilities on Sit Us and Sit 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 Sit Us with a short position of Sit Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Us and Sit Small.
Diversification Opportunities for Sit Us and Sit Small
Poor diversification
The 3 months correlation between Sit and Sit is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sit Government Securities and Sit Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Small Cap 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 Sit Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Small Cap has no effect on the direction of Sit Us i.e., Sit Us and Sit Small go up and down completely randomly.
Pair Corralation between Sit Us and Sit Small
Assuming the 90 days horizon Sit Government Securities is expected to generate 0.16 times more return on investment than Sit Small. However, Sit Government Securities is 6.33 times less risky than Sit Small. It trades about 0.15 of its potential returns per unit of risk. Sit Small Cap is currently generating about -0.01 per unit of risk. If you would invest 1,026 in Sit Government Securities on August 19, 2025 and sell it today you would earn a total of 16.00 from holding Sit Government Securities or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Government Securities vs. Sit Small Cap
Performance |
| Timeline |
| Sit Government Securities |
| Sit Small Cap |
Sit Us and Sit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Us and Sit Small
The main advantage of trading using opposite Sit Us and Sit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Us position performs unexpectedly, Sit 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 Sit Small will offset losses from the drop in Sit Small's long position.| Sit Us vs. Sit Small Cap | Sit Us vs. Sit Global Dividend | Sit Us vs. Sit Global Dividend | Sit Us vs. Sit Small Cap |
| Sit Small vs. Applied Finance Explorer | Sit Small vs. Fpa Queens Road | Sit Small vs. Omni Small Cap Value | Sit Small vs. Ultramid Cap Profund Ultramid 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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