Correlation Between Sit International and Simt Global
Can any of the company-specific risk be diversified away by investing in both Sit International and Simt Global 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 Sit International and Simt Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit International Equity and Simt Global Managed, you can compare the effects of market volatilities on Sit International and Simt Global 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 Sit International with a short position of Simt Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit International and Simt Global.
Diversification Opportunities for Sit International and Simt Global
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sit and Simt is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sit International Equity and Simt Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Global Managed and Sit International 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 Sit International Equity are associated (or correlated) with Simt Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Global Managed has no effect on the direction of Sit International i.e., Sit International and Simt Global go up and down completely randomly.
Pair Corralation between Sit International and Simt Global
Assuming the 90 days horizon Sit International Equity is expected to generate 1.6 times more return on investment than Simt Global. However, Sit International is 1.6 times more volatile than Simt Global Managed. It trades about 0.07 of its potential returns per unit of risk. Simt Global Managed is currently generating about 0.08 per unit of risk. If you would invest 982.00 in Sit International Equity on September 14, 2024 and sell it today you would earn a total of 301.00 from holding Sit International Equity or generate 30.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit International Equity vs. Simt Global Managed
Performance |
| Timeline |
| Sit International Equity |
| Simt Global Managed |
Sit International and Simt Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit International and Simt Global
The main advantage of trading using opposite Sit International and Simt Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit International position performs unexpectedly, Simt Global 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 Global will offset losses from the drop in Simt Global's long position.| Sit International vs. Sit Emerging Markets | Sit International vs. Simt E Fixed | Sit International vs. Simt Multi Asset Income | Sit International vs. Simt Global Managed |
| Simt Global vs. Simt Multi Asset Income | Simt Global vs. Sit Emerging Markets | Simt Global vs. Simt E Fixed | Simt Global vs. Sit International Equity |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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