Correlation Between Simt Multi-asset and Siit High
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Siit High 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 High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Capital and Siit High Yield, you can compare the effects of market volatilities on Simt Multi-asset and Siit High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Siit High.
Diversification Opportunities for Simt Multi-asset and Siit High
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Simt and Siit is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Capital and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield 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 Capital are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Siit High go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Siit High
Assuming the 90 days horizon Simt Multi-asset is expected to generate 2.45 times less return on investment than Siit High. But when comparing it to its historical volatility, Simt Multi Asset Capital is 1.38 times less risky than Siit High. It trades about 0.1 of its potential returns per unit of risk. Siit High Yield is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 713.00 in Siit High Yield on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Siit High Yield or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Capital vs. Siit High Yield
Performance |
| Timeline |
| Simt Multi Asset |
| Siit High Yield |
Simt Multi-asset and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Siit High
The main advantage of trading using opposite Simt Multi-asset and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Siit High 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 High will offset losses from the drop in Siit High's long position.| Simt Multi-asset vs. Siit High Yield | Simt Multi-asset vs. Legg Mason Partners | Simt Multi-asset vs. Pioneer High Yield | Simt Multi-asset vs. Lgm Risk Managed |
| Siit High vs. Vanguard High Yield Corporate | Siit High vs. Vanguard High Yield Porate | Siit High vs. Blackrock Hi Yld | Siit High vs. Blackrock High Yield |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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