Correlation Between Sit Small and Ms Global
Can any of the company-specific risk be diversified away by investing in both Sit Small and Ms Global 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 Small and Ms Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Small Cap and Ms Global Fixed, you can compare the effects of market volatilities on Sit Small and Ms Global 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 Small with a short position of Ms Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Small and Ms Global.
Diversification Opportunities for Sit Small and Ms Global
Modest diversification
The 3 months correlation between Sit and MFIRX is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sit Small Cap and Ms Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ms Global Fixed and Sit Small 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 Small Cap are associated (or correlated) with Ms Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ms Global Fixed has no effect on the direction of Sit Small i.e., Sit Small and Ms Global go up and down completely randomly.
Pair Corralation between Sit Small and Ms Global
Assuming the 90 days horizon Sit Small Cap is expected to generate 8.35 times more return on investment than Ms Global. However, Sit Small is 8.35 times more volatile than Ms Global Fixed. It trades about 0.06 of its potential returns per unit of risk. Ms Global Fixed is currently generating about 0.22 per unit of risk. If you would invest 6,913 in Sit Small Cap on September 2, 2025 and sell it today you would earn a total of 295.00 from holding Sit Small Cap or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Small Cap vs. Ms Global Fixed
Performance |
| Timeline |
| Sit Small Cap |
| Ms Global Fixed |
Sit Small and Ms Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Small and Ms Global
The main advantage of trading using opposite Sit Small and Ms Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Small position performs unexpectedly, Ms Global 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 Ms Global will offset losses from the drop in Ms Global's long position.| Sit Small vs. Fidelity Advisor Financial | Sit Small vs. Icon Financial Fund | Sit Small vs. Financial Industries Fund | Sit Small vs. Financial Industries Fund |
| Ms Global vs. Financial Industries Fund | Ms Global vs. Vanguard Financials Index | Ms Global vs. John Hancock Financial | Ms Global vs. Gabelli Global Financial |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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