Correlation Between Simt Multi and Simt Sp
Can any of the company-specific risk be diversified away by investing in both Simt Multi and Simt Sp 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 Simt Sp 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 Sp 500, you can compare the effects of market volatilities on Simt Multi and Simt Sp 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 Simt Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Simt Sp.
Diversification Opportunities for Simt Multi and Simt Sp
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simt and Simt is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Simt Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Sp 500 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 Simt Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Sp 500 has no effect on the direction of Simt Multi i.e., Simt Multi and Simt Sp go up and down completely randomly.
Pair Corralation between Simt Multi and Simt Sp
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to under-perform the Simt Sp. But the mutual fund apears to be less risky and, when comparing its historical volatility, Simt Multi Asset Accumulation is 1.54 times less risky than Simt Sp. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Simt Sp 500 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 10,318 in Simt Sp 500 on August 25, 2024 and sell it today you would earn a total of 436.00 from holding Simt Sp 500 or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Accumulation vs. Simt Sp 500
Performance |
| Timeline |
| Simt Multi Asset |
| Simt Sp 500 |
Simt Multi and Simt Sp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi and Simt Sp
The main advantage of trading using opposite Simt Multi and Simt Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi position performs unexpectedly, Simt Sp 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 Sp will offset losses from the drop in Simt Sp'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 |
| Simt Sp vs. Simt Multi Asset Accumulation | Simt Sp vs. Saat Market Growth | Simt Sp vs. Simt Real Return | Simt Sp 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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