Correlation Between Siit High and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Siit High 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 High 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 High Yield and Simt Multi Asset Capital, you can compare the effects of market volatilities on Siit High 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 High with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Simt Multi-asset.
Diversification Opportunities for Siit High and Simt Multi-asset
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siit and Simt is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Simt Multi Asset Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Siit 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 Siit High Yield 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 High i.e., Siit High and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Siit High and Simt Multi-asset
Assuming the 90 days horizon Siit High Yield is expected to generate 1.87 times more return on investment than Simt Multi-asset. However, Siit High is 1.87 times more volatile than Simt Multi Asset Capital. It trades about 0.12 of its potential returns per unit of risk. Simt Multi Asset Capital is currently generating about 0.15 per unit of risk. If you would invest 620.00 in Siit High Yield on August 31, 2024 and sell it today you would earn a total of 98.00 from holding Siit High Yield or generate 15.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Simt Multi Asset Capital
Performance |
| Timeline |
| Siit High Yield |
| Simt Multi Asset |
Siit High and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Simt Multi-asset
The main advantage of trading using opposite Siit High and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High 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 High vs. Vanguard High Yield Corporate | Siit High vs. Vanguard High Yield Porate | Siit High vs. Blackrock Hi Yld | Siit High vs. Blackrock High Yield |
| Simt Multi-asset vs. Siit High Yield | Simt Multi-asset vs. Legg Mason Partners | Simt Multi-asset vs. Pioneer High Yield | Simt Multi-asset vs. Lgm Risk Managed |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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