Correlation Between Simt High and City National
Can any of the company-specific risk be diversified away by investing in both Simt High and City National 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 High and City National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt High Yield and City National Rochdale, you can compare the effects of market volatilities on Simt High and City National 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 High with a short position of City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt High and City National.
Diversification Opportunities for Simt High and City National
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and City is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Simt High Yield and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale and Simt High 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 High Yield are associated (or correlated) with City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Simt High i.e., Simt High and City National go up and down completely randomly.
Pair Corralation between Simt High and City National
Assuming the 90 days horizon Simt High is expected to generate 1.05 times less return on investment than City National. In addition to that, Simt High is 3.29 times more volatile than City National Rochdale. It trades about 0.19 of its total potential returns per unit of risk. City National Rochdale is currently generating about 0.67 per unit of volatility. If you would invest 1,959 in City National Rochdale on November 30, 2024 and sell it today you would earn a total of 16.00 from holding City National Rochdale or generate 0.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Simt High Yield vs. City National Rochdale
Performance |
Timeline |
Simt High Yield |
City National Rochdale |
Simt High and City National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simt High and City National
The main advantage of trading using opposite Simt High and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt High position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.Simt High vs. Fidelity Advisor Gold | ||
Simt High vs. Gamco Global Gold | ||
Simt High vs. Europac Gold Fund | ||
Simt High vs. Invesco Gold Special |
City National vs. Nexpoint Real Estate | ||
City National vs. Redwood Real Estate | ||
City National vs. Prudential Real Estate | ||
City National vs. Neuberger Berman 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |