Correlation Between Simt Multi and Siit Multi
Can any of the company-specific risk be diversified away by investing in both Simt Multi and Siit Multi 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 and Siit Multi 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 Multi Asset Real, you can compare the effects of market volatilities on Simt Multi and Siit Multi 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 with a short position of Siit Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Siit Multi.
Diversification Opportunities for Simt Multi and Siit Multi
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and Siit is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Siit Multi Asset Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Multi Asset and Simt Multi 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 Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Multi Asset has no effect on the direction of Simt Multi i.e., Simt Multi and Siit Multi go up and down completely randomly.
Pair Corralation between Simt Multi and Siit Multi
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to generate 2.24 times more return on investment than Siit Multi. However, Simt Multi is 2.24 times more volatile than Siit Multi Asset Real. It trades about 0.06 of its potential returns per unit of risk. Siit Multi Asset Real is currently generating about 0.09 per unit of risk. If you would invest 694.00 in Simt Multi Asset Accumulation on September 14, 2024 and sell it today you would earn a total of 54.00 from holding Simt Multi Asset Accumulation or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Simt Multi Asset Accumulation vs. Siit Multi Asset Real
Performance |
| Timeline |
| Simt Multi Asset |
| Siit Multi Asset |
Simt Multi and Siit Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi and Siit Multi
The main advantage of trading using opposite Simt Multi and Siit Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi position performs unexpectedly, Siit Multi 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 Multi will offset losses from the drop in Siit Multi's long position.| Simt Multi vs. Fidelity Advisor Energy | Simt Multi vs. Thrivent Natural Resources | Simt Multi vs. Clearbridge Energy Mlp | Simt Multi vs. Gamco Natural Resources |
| Siit Multi vs. Simt Multi Asset Accumulation | Siit Multi vs. Saat Market Growth | Siit Multi vs. Simt Real Return | Siit Multi 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 Stocks Directory module to find actively traded stocks across global markets.
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