Correlation Between Sit Emerging and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Sit Emerging and Simt Multi 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 Emerging and Simt Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Emerging Markets and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Sit Emerging and Simt Multi 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 Emerging with a short position of Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Emerging and Simt Multi.
Diversification Opportunities for Sit Emerging and Simt Multi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sit and Simt is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sit Emerging Markets 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 Sit Emerging 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 Emerging Markets are associated (or correlated) with Simt Multi. 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 Sit Emerging i.e., Sit Emerging and Simt Multi go up and down completely randomly.
Pair Corralation between Sit Emerging and Simt Multi
Assuming the 90 days horizon Sit Emerging is expected to generate 2.31 times less return on investment than Simt Multi. But when comparing it to its historical volatility, Sit Emerging Markets is 1.34 times less risky than Simt Multi. It trades about 0.03 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 738.00 in Simt Multi Asset Accumulation on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Simt Multi Asset Accumulation or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Emerging Markets vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Sit Emerging Markets |
| Simt Multi Asset |
Sit Emerging and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Emerging and Simt Multi
The main advantage of trading using opposite Sit Emerging and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Emerging position performs unexpectedly, Simt Multi 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 will offset losses from the drop in Simt Multi's long position.| Sit Emerging vs. Simt Multi Asset Accumulation | Sit Emerging vs. Saat Market Growth | Sit Emerging vs. Simt Real Return | Sit Emerging vs. Simt Small Cap |
| Simt Multi vs. Saat Market Growth | Simt Multi vs. Simt Real Return | Simt Multi vs. Simt Small Cap | Simt Multi vs. Siit Screened World |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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