Correlation Between Simt Multi and Sit Emerging
Can any of the company-specific risk be diversified away by investing in both Simt Multi and Sit Emerging 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 Sit Emerging 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 Sit Emerging Markets, you can compare the effects of market volatilities on Simt Multi and Sit Emerging 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 Sit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Sit Emerging.
Diversification Opportunities for Simt Multi and Sit Emerging
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Sit is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Sit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Emerging Markets 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 Sit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Emerging Markets has no effect on the direction of Simt Multi i.e., Simt Multi and Sit Emerging go up and down completely randomly.
Pair Corralation between Simt Multi and Sit Emerging
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to generate 1.34 times more return on investment than Sit Emerging. However, Simt Multi is 1.34 times more volatile than Sit Emerging Markets. It trades about 0.05 of its potential returns per unit of risk. Sit Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 738.00 in Simt Multi Asset Accumulation on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Simt Multi Asset Accumulation or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Accumulation vs. Sit Emerging Markets
Performance |
| Timeline |
| Simt Multi Asset |
| Sit Emerging Markets |
Simt Multi and Sit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi and Sit Emerging
The main advantage of trading using opposite Simt Multi and Sit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi position performs unexpectedly, Sit Emerging 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 Sit Emerging will offset losses from the drop in Sit Emerging's long position.| Simt Multi vs. Saat Market Growth | Simt Multi vs. Simt Real Return | Simt Multi vs. Simt Small Cap | Simt Multi vs. Siit Screened World |
| Sit Emerging vs. Simt Multi Asset Accumulation | Sit Emerging vs. Saat Market Growth | Sit Emerging vs. Simt Real Return | Sit Emerging 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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