Correlation Between Issachar Fund and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Issachar Fund 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 Issachar Fund 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 Issachar Fund Class and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Issachar Fund 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 Issachar Fund with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Simt Multi-asset.
Diversification Opportunities for Issachar Fund and Simt Multi-asset
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Issachar and Simt is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class 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 Issachar Fund 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 Issachar Fund Class 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 Issachar Fund i.e., Issachar Fund and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Issachar Fund and Simt Multi-asset
Assuming the 90 days horizon Issachar Fund Class is expected to generate 2.0 times more return on investment than Simt Multi-asset. However, Issachar Fund is 2.0 times more volatile than Simt Multi Asset Accumulation. It trades about 0.4 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 979.00 in Issachar Fund Class on September 4, 2024 and sell it today you would earn a total of 78.00 from holding Issachar Fund Class or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Issachar Fund Class vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Issachar Fund Class |
| Simt Multi Asset |
Issachar Fund and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Issachar Fund and Simt Multi-asset
The main advantage of trading using opposite Issachar Fund and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund 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.| Issachar Fund vs. Oppenheimer International Diversified | Issachar Fund vs. Massmutual Premier Diversified | Issachar Fund vs. Massmutual Select Diversified | Issachar Fund vs. Adams Diversified Equity |
| Simt Multi-asset vs. Simt Multi Asset Accumulation | Simt Multi-asset vs. Saat Market Growth | Simt Multi-asset vs. Simt Real Return | Simt Multi-asset 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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