Correlation Between Simt Multi-asset and Simt Core
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Simt Core 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-asset and Simt Core 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 Simt E Fixed, you can compare the effects of market volatilities on Simt Multi-asset and Simt Core 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-asset with a short position of Simt Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Simt Core.
Diversification Opportunities for Simt Multi-asset and Simt Core
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and Simt is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Simt E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt E Fixed and Simt Multi-asset 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 Simt Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt E Fixed has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Simt Core go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Simt Core
Assuming the 90 days horizon Simt Multi-asset is expected to generate 1.15 times less return on investment than Simt Core. In addition to that, Simt Multi-asset is 1.55 times more volatile than Simt E Fixed. It trades about 0.05 of its total potential returns per unit of risk. Simt E Fixed is currently generating about 0.09 per unit of volatility. If you would invest 917.00 in Simt E Fixed on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Simt E Fixed or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Accumulation vs. Simt E Fixed
Performance |
| Timeline |
| Simt Multi Asset |
| Simt E Fixed |
Simt Multi-asset and Simt Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Simt Core
The main advantage of trading using opposite Simt Multi-asset and Simt Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Simt Core 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 Core will offset losses from the drop in Simt Core's long position.| Simt Multi-asset vs. Astor Longshort Fund | Simt Multi-asset vs. California Bond Fund | Simt Multi-asset vs. Kinetics Market Opportunities | Simt Multi-asset vs. Bbh Intermediate Municipal |
| Simt Core vs. Vanguard Total Bond | Simt Core vs. Vanguard Total Bond | Simt Core vs. Vanguard Total Bond | Simt Core vs. Bond Fund Of |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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