Correlation Between Simt Multi-asset and Ab Bond
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Ab Bond 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 Multi-asset and Ab Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Inflation and Ab Bond Inflation, you can compare the effects of market volatilities on Simt Multi-asset and Ab Bond 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 Multi-asset with a short position of Ab Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Ab Bond.
Diversification Opportunities for Simt Multi-asset and Ab Bond
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and ABNTX is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Ab Bond Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Bond Inflation and Simt Multi-asset 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 Multi Asset Inflation are associated (or correlated) with Ab Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Bond Inflation has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Ab Bond go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Ab Bond
Assuming the 90 days horizon Simt Multi Asset Inflation is expected to generate 1.58 times more return on investment than Ab Bond. However, Simt Multi-asset is 1.58 times more volatile than Ab Bond Inflation. It trades about -0.02 of its potential returns per unit of risk. Ab Bond Inflation is currently generating about -0.11 per unit of risk. If you would invest 804.00 in Simt Multi Asset Inflation on August 24, 2024 and sell it today you would lose (1.00) from holding Simt Multi Asset Inflation or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Ab Bond Inflation
Performance |
| Timeline |
| Simt Multi Asset |
| Ab Bond Inflation |
Simt Multi-asset and Ab Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Ab Bond
The main advantage of trading using opposite Simt Multi-asset and Ab Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Ab Bond 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 Ab Bond will offset losses from the drop in Ab Bond's long position.| Simt Multi-asset vs. Advent Claymore Convertible | Simt Multi-asset vs. Fidelity Vertible Securities | Simt Multi-asset vs. Gabelli Convertible And | Simt Multi-asset vs. Rationalpier 88 Convertible |
| Ab Bond vs. Applied Finance Explorer | Ab Bond vs. Great West Loomis Sayles | Ab Bond vs. Queens Road Small | Ab Bond vs. Valic Company I |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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