Correlation Between Simt Multi-asset and Siit Large
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Siit Large 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 Siit Large 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 Siit Large Cap, you can compare the effects of market volatilities on Simt Multi-asset and Siit Large 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 Siit Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Siit Large.
Diversification Opportunities for Simt Multi-asset and Siit Large
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and Siit is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Siit Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Large Cap 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 Siit Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Large Cap has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Siit Large go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Siit Large
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to generate 0.21 times more return on investment than Siit Large. However, Simt Multi Asset Accumulation is 4.81 times less risky than Siit Large. It trades about 0.04 of its potential returns per unit of risk. Siit Large Cap is currently generating about -0.11 per unit of risk. If you would invest 715.00 in Simt Multi Asset Accumulation on October 19, 2024 and sell it today you would earn a total of 7.00 from holding Simt Multi Asset Accumulation or generate 0.98% 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. Siit Large Cap
Performance |
| Timeline |
| Simt Multi Asset |
| Siit Large Cap |
Simt Multi-asset and Siit Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Siit Large
The main advantage of trading using opposite Simt Multi-asset and Siit Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Siit Large 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 Siit Large will offset losses from the drop in Siit Large's long position.| Simt Multi-asset vs. Invesco Energy Fund | Simt Multi-asset vs. Vanguard Energy Index | Simt Multi-asset vs. Clearbridge Energy Mlp | Simt Multi-asset vs. Blackrock All Cap Energy |
| Siit Large vs. Simt Multi Asset Accumulation | Siit Large vs. Saat Market Growth | Siit Large vs. Simt Real Return | Siit Large 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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