Correlation Between Eic Value and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Eic Value 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 Eic Value 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 Eic Value Fund and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Eic Value 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 Eic Value with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Simt Multi-asset.
Diversification Opportunities for Eic Value and Simt Multi-asset
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eic and Simt is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Eic Value 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 Eic Value Fund 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 Eic Value i.e., Eic Value and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Eic Value and Simt Multi-asset
Assuming the 90 days horizon Eic Value Fund is expected to generate 1.29 times more return on investment than Simt Multi-asset. However, Eic Value is 1.29 times more volatile than Simt Multi Asset Accumulation. It trades about 0.36 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.27 per unit of risk. If you would invest 1,838 in Eic Value Fund on September 3, 2024 and sell it today you would earn a total of 84.00 from holding Eic Value Fund or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Eic Value Fund |
| Simt Multi Asset |
Eic Value and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Simt Multi-asset
The main advantage of trading using opposite Eic Value and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value 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.| Eic Value vs. Tax Managed Mid Small | Eic Value vs. Legg Mason Bw | Eic Value vs. Jhancock Diversified Macro | Eic Value vs. Davenport Small Cap |
| Simt Multi-asset vs. Eic Value Fund | Simt Multi-asset vs. Commodities Strategy Fund | Simt Multi-asset vs. Commonwealth Global Fund | Simt Multi-asset vs. Issachar Fund Class |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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