Correlation Between Siit Large and Simt Mid
Can any of the company-specific risk be diversified away by investing in both Siit Large and Simt Mid 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 Siit Large and Simt Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Large Cap and Simt Mid Cap, you can compare the effects of market volatilities on Siit Large and Simt Mid 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 Siit Large with a short position of Simt Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Simt Mid.
Diversification Opportunities for Siit Large and Simt Mid
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Simt is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Simt Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Mid Cap and Siit Large 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 Siit Large Cap are associated (or correlated) with Simt Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Mid Cap has no effect on the direction of Siit Large i.e., Siit Large and Simt Mid go up and down completely randomly.
Pair Corralation between Siit Large and Simt Mid
Assuming the 90 days horizon Siit Large is expected to generate 1.77 times less return on investment than Simt Mid. But when comparing it to its historical volatility, Siit Large Cap is 1.23 times less risky than Simt Mid. It trades about 0.16 of its potential returns per unit of risk. Simt Mid Cap is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,248 in Simt Mid Cap on August 25, 2024 and sell it today you would earn a total of 168.00 from holding Simt Mid Cap or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Simt Mid Cap
Performance |
| Timeline |
| Siit Large Cap |
| Simt Mid Cap |
Siit Large and Simt Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Simt Mid
The main advantage of trading using opposite Siit Large and Simt Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large position performs unexpectedly, Simt Mid 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 Mid will offset losses from the drop in Simt Mid's long position.| Siit Large vs. Baillie Gifford Health | Siit Large vs. Lord Abbett Health | Siit Large vs. Eventide Healthcare Life | Siit Large vs. Hartford Healthcare Hls |
| Simt Mid vs. Simt Large Cap | Simt Mid vs. Simt Small Cap | Simt Mid vs. Simt Large Cap | Simt Mid 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |