Correlation Between Siit Real and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Siit Real 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 Siit Real 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 Siit Real Return and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Siit Real 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 Siit Real with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Real and Simt Multi-asset.
Diversification Opportunities for Siit Real and Simt Multi-asset
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Simt is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Siit Real Return 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 Siit Real 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 Siit Real Return 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 Siit Real i.e., Siit Real and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Siit Real and Simt Multi-asset
Assuming the 90 days horizon Siit Real is expected to generate 2.15 times less return on investment than Simt Multi-asset. But when comparing it to its historical volatility, Siit Real Return is 4.61 times less risky than Simt Multi-asset. It trades about 0.13 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 737.00 in Simt Multi Asset Accumulation on August 30, 2024 and sell it today you would earn a total of 5.00 from holding Simt Multi Asset Accumulation or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Real Return vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Siit Real Return |
| Simt Multi Asset |
Siit Real and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Real and Simt Multi-asset
The main advantage of trading using opposite Siit Real and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Real 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.| Siit Real vs. Simt Multi Asset Accumulation | Siit Real vs. Saat Market Growth | Siit Real vs. Simt Small Cap | Siit Real vs. Siit Screened World |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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