Correlation Between Siit Emerging and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Siit Emerging 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 Siit Emerging 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 Siit Emerging Markets and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Siit Emerging 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 Siit Emerging with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Simt Multi-asset.
Diversification Opportunities for Siit Emerging and Simt Multi-asset
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Simt is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets 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 Siit Emerging 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 Emerging Markets 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 Siit Emerging i.e., Siit Emerging and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Siit Emerging and Simt Multi-asset
Assuming the 90 days horizon Siit Emerging Markets is expected to generate 0.77 times more return on investment than Simt Multi-asset. However, Siit Emerging Markets is 1.31 times less risky than Simt Multi-asset. It trades about 0.08 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.04 per unit of risk. If you would invest 755.00 in Siit Emerging Markets on August 30, 2024 and sell it today you would earn a total of 105.00 from holding Siit Emerging Markets or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Siit Emerging Markets |
| Simt Multi Asset |
Siit Emerging and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Simt Multi-asset
The main advantage of trading using opposite Siit Emerging and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging 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.| Siit Emerging vs. Volumetric Fund Volumetric | Siit Emerging vs. T Rowe Price | Siit Emerging vs. Jp Morgan Smartretirement | Siit Emerging vs. T Rowe Price |
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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 Stocks Directory module to find actively traded stocks across global markets.
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