Correlation Between Simt Multi-asset and Siit Ultra
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Siit Ultra 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 Ultra 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 Ultra Short, you can compare the effects of market volatilities on Simt Multi-asset and Siit Ultra 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 Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Siit Ultra.
Diversification Opportunities for Simt Multi-asset and Siit Ultra
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simt and Siit is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Siit Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Ultra Short 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 Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Ultra Short has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Siit Ultra go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Siit Ultra
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to generate 5.23 times more return on investment than Siit Ultra. However, Simt Multi-asset is 5.23 times more volatile than Siit Ultra Short. It trades about 0.05 of its potential returns per unit of risk. Siit Ultra Short is currently generating about 0.23 per unit of risk. If you would invest 677.00 in Simt Multi Asset Accumulation on September 2, 2024 and sell it today you would earn a total of 70.00 from holding Simt Multi Asset Accumulation or generate 10.34% 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 Ultra Short
Performance |
| Timeline |
| Simt Multi Asset |
| Siit Ultra Short |
Simt Multi-asset and Siit Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Siit Ultra
The main advantage of trading using opposite Simt Multi-asset and Siit Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Siit Ultra 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 Ultra will offset losses from the drop in Siit Ultra's long position.| Simt Multi-asset vs. Saat Market Growth | Simt Multi-asset vs. Simt Small Cap | Simt Multi-asset vs. Siit Screened World | Simt Multi-asset vs. Saat Aggressive Strategy |
| Siit Ultra vs. Transamerica Emerging Markets | Siit Ultra vs. Franklin Emerging Market | Siit Ultra vs. Pace International Emerging | Siit Ultra vs. Barings Emerging Markets |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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