Correlation Between Simt Multi and Siit E
Can any of the company-specific risk be diversified away by investing in both Simt Multi and Siit E 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 Simt Multi and Siit E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Accumulation and Siit E Fixed, you can compare the effects of market volatilities on Simt Multi and Siit E 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 Simt Multi with a short position of Siit E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Siit E.
Diversification Opportunities for Simt Multi and Siit E
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simt and Siit is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Siit E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit E Fixed and Simt Multi 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 Simt Multi Asset Accumulation are associated (or correlated) with Siit E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit E Fixed has no effect on the direction of Simt Multi i.e., Simt Multi and Siit E go up and down completely randomly.
Pair Corralation between Simt Multi and Siit E
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to generate 1.43 times more return on investment than Siit E. However, Simt Multi is 1.43 times more volatile than Siit E Fixed. It trades about -0.06 of its potential returns per unit of risk. Siit E Fixed is currently generating about -0.17 per unit of risk. If you would invest 757.00 in Simt Multi Asset Accumulation on September 17, 2024 and sell it today you would lose (13.00) from holding Simt Multi Asset Accumulation or give up 1.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Simt Multi Asset Accumulation vs. Siit E Fixed
Performance |
Timeline |
Simt Multi Asset |
Siit E Fixed |
Simt Multi and Siit E Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simt Multi and Siit E
The main advantage of trading using opposite Simt Multi and Siit E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi position performs unexpectedly, Siit E 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 Siit E will offset losses from the drop in Siit E's long position.Simt Multi vs. T Rowe Price | Simt Multi vs. Bbh Intermediate Municipal | Simt Multi vs. Dreyfusstandish Global Fixed | Simt Multi vs. Western Asset Municipal |
Siit E vs. Simt Multi Asset Accumulation | Siit E vs. Saat Market Growth | Siit E vs. Simt Real Return | Siit E vs. Simt Small 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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