Correlation Between Simt Real and Aggressive Growth
Can any of the company-specific risk be diversified away by investing in both Simt Real and Aggressive Growth 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 Real and Aggressive Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Real Estate and Aggressive Growth Fund, you can compare the effects of market volatilities on Simt Real and Aggressive Growth 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 Real with a short position of Aggressive Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Real and Aggressive Growth.
Diversification Opportunities for Simt Real and Aggressive Growth
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Simt and Aggressive is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Simt Real Estate and Aggressive Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Growth and Simt Real 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 Real Estate are associated (or correlated) with Aggressive Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Growth has no effect on the direction of Simt Real i.e., Simt Real and Aggressive Growth go up and down completely randomly.
Pair Corralation between Simt Real and Aggressive Growth
Assuming the 90 days horizon Simt Real is expected to generate 3.01 times less return on investment than Aggressive Growth. In addition to that, Simt Real is 1.03 times more volatile than Aggressive Growth Fund. It trades about 0.04 of its total potential returns per unit of risk. Aggressive Growth Fund is currently generating about 0.12 per unit of volatility. If you would invest 3,544 in Aggressive Growth Fund on September 20, 2024 and sell it today you would earn a total of 3,405 from holding Aggressive Growth Fund or generate 96.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Real Estate vs. Aggressive Growth Fund
Performance |
| Timeline |
| Simt Real Estate |
| Aggressive Growth |
Simt Real and Aggressive Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Real and Aggressive Growth
The main advantage of trading using opposite Simt Real and Aggressive Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Real position performs unexpectedly, Aggressive Growth 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 Aggressive Growth will offset losses from the drop in Aggressive Growth's long position.| Simt Real vs. Investec Global Franchise | Simt Real vs. Mirova Global Green | Simt Real vs. Commonwealth Global Fund | Simt Real vs. Ab Global Risk |
| Aggressive Growth vs. Simt Real Estate | Aggressive Growth vs. Jhancock Real Estate | Aggressive Growth vs. Virtus Real Estate | Aggressive Growth vs. Vy Clarion Real |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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