Correlation Between Simt Multi-asset and Siit Small
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Siit Small 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 Small 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 Small Mid, you can compare the effects of market volatilities on Simt Multi-asset and Siit Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Siit Small.
Diversification Opportunities for Simt Multi-asset and Siit Small
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simt and Siit is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Siit Small Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Small Mid 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Small Mid has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Siit Small go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Siit Small
Assuming the 90 days horizon Simt Multi-asset is expected to generate 2.72 times less return on investment than Siit Small. But when comparing it to its historical volatility, Simt Multi Asset Accumulation is 2.12 times less risky than Siit Small. It trades about 0.04 of its potential returns per unit of risk. Siit Small Mid is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 934.00 in Siit Small Mid on August 29, 2024 and sell it today you would earn a total of 241.00 from holding Siit Small Mid or generate 25.8% 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. Siit Small Mid
Performance |
| Timeline |
| Simt Multi Asset |
| Siit Small Mid |
Simt Multi-asset and Siit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Siit Small
The main advantage of trading using opposite Simt Multi-asset and Siit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Siit Small 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 Small will offset losses from the drop in Siit Small'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 |
| Siit Small vs. Fidelity Series 1000 | Siit Small vs. Fundamental Large Cap | Siit Small vs. Qs Large Cap | Siit Small vs. American Mutual Fund |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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