Correlation Between Simt High and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Simt 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 Simt 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 Simt High Yield and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Simt 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 Simt High with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt High and Simt Multi-asset.
Diversification Opportunities for Simt High and Simt Multi-asset
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simt and Simt is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Simt High Yield 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 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 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 Simt High i.e., Simt High and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Simt High and Simt Multi-asset
Assuming the 90 days horizon Simt High Yield is expected to generate 0.42 times more return on investment than Simt Multi-asset. However, Simt High Yield is 2.38 times less risky than Simt Multi-asset. It trades about 0.2 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.01 per unit of risk. If you would invest 527.00 in Simt High Yield on August 29, 2024 and sell it today you would earn a total of 14.00 from holding Simt High Yield or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Simt High Yield vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Simt High Yield |
| Simt Multi Asset |
Simt High and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt High and Simt Multi-asset
The main advantage of trading using opposite Simt High and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt 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.| Simt High vs. Artisan High Income | Simt High vs. Sit Emerging Markets | Simt High vs. Sit International Equity | Simt High vs. Stet Intermediate Term |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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