Correlation Between Stet California and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Stet California and Simt Multi-asset 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 Stet California and Simt Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stet California Municipal and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Stet California and Simt Multi-asset 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 Stet California with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stet California and Simt Multi-asset.
Diversification Opportunities for Stet California and Simt Multi-asset
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stet and Simt is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Stet California Municipal and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Stet California 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 Stet California Municipal are associated (or correlated) with Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Stet California i.e., Stet California and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Stet California and Simt Multi-asset
Assuming the 90 days horizon Stet California Municipal is expected to under-perform the Simt Multi-asset. But the mutual fund apears to be less risky and, when comparing its historical volatility, Stet California Municipal is 2.8 times less risky than Simt Multi-asset. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Simt Multi Asset Accumulation is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 704.00 in Simt Multi Asset Accumulation on October 20, 2024 and sell it today you would earn a total of 18.00 from holding Simt Multi Asset Accumulation or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stet California Municipal vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Stet California Municipal |
| Simt Multi Asset |
Stet California and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stet California and Simt Multi-asset
The main advantage of trading using opposite Stet California and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stet California position performs unexpectedly, Simt Multi-asset 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 Multi-asset will offset losses from the drop in Simt Multi-asset's long position.| Stet California vs. Simt Multi Asset Accumulation | Stet California vs. Saat Market Growth | Stet California vs. Simt Real Return | Stet California vs. Simt Small Cap |
| Simt Multi-asset vs. Mesirow Financial Small | Simt Multi-asset vs. Goldman Sachs Financial | Simt Multi-asset vs. Financial Industries Fund | Simt Multi-asset vs. 1919 Financial Services |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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