Correlation Between Sdit Gnma and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Sdit Gnma 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 Sdit Gnma 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 Sdit Gnma Fund and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Sdit Gnma 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 Sdit Gnma with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sdit Gnma and Simt Multi-asset.
Diversification Opportunities for Sdit Gnma and Simt Multi-asset
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sdit and Simt is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sdit Gnma Fund 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 Sdit Gnma 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 Sdit Gnma Fund 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 Sdit Gnma i.e., Sdit Gnma and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Sdit Gnma and Simt Multi-asset
Assuming the 90 days horizon Sdit Gnma is expected to generate 3.46 times less return on investment than Simt Multi-asset. But when comparing it to its historical volatility, Sdit Gnma Fund is 1.38 times less risky than Simt Multi-asset. It trades about 0.11 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 727.00 in Simt Multi Asset Accumulation on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Simt Multi Asset Accumulation or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sdit Gnma Fund vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Sdit Gnma Fund |
| Simt Multi Asset |
Sdit Gnma and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sdit Gnma and Simt Multi-asset
The main advantage of trading using opposite Sdit Gnma and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sdit Gnma 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.| Sdit Gnma vs. Simt Multi Asset Accumulation | Sdit Gnma vs. Saat Market Growth | Sdit Gnma vs. Simt Real Return | Sdit Gnma vs. Simt Small Cap |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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