Correlation Between Short Duration and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Short Duration and Simt Multi-asset 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 Short Duration and Simt Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Duration Inflation and Simt Multi Asset Inflation, you can compare the effects of market volatilities on Short Duration and Simt Multi-asset 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 Short Duration with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Duration and Simt Multi-asset.
Diversification Opportunities for Short Duration and Simt Multi-asset
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SHORT and Simt is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Short Duration Inflation and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Short Duration 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 Short Duration Inflation are associated (or correlated) with Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Short Duration i.e., Short Duration and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Short Duration and Simt Multi-asset
Assuming the 90 days horizon Short Duration is expected to generate 2.79 times less return on investment than Simt Multi-asset. But when comparing it to its historical volatility, Short Duration Inflation is 1.68 times less risky than Simt Multi-asset. It trades about 0.35 of its potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.59 of returns per unit of risk over similar time horizon. If you would invest 763.00 in Simt Multi Asset Inflation on October 26, 2024 and sell it today you would earn a total of 18.00 from holding Simt Multi Asset Inflation or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Short Duration Inflation vs. Simt Multi Asset Inflation
Performance |
| Timeline |
| Short Duration Inflation |
| Simt Multi Asset |
Short Duration and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Duration and Simt Multi-asset
The main advantage of trading using opposite Short Duration and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Duration position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset's long position.| Short Duration vs. Inflation Adjusted Bond Fund | Short Duration vs. Diversified Bond Fund | Short Duration vs. Short Duration Fund | Short Duration vs. Core Plus Fund |
| Simt Multi-asset vs. Tax Managed Large Cap | Simt Multi-asset vs. Virtus Nfj Large Cap | Simt Multi-asset vs. Qs Large Cap | Simt Multi-asset vs. Large Cap Growth Profund |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |