Correlation Between Simt Multi-asset and Inflation Protected
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Inflation Protected 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 Inflation Protected 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 Inflation Protected Bond Fund, you can compare the effects of market volatilities on Simt Multi-asset and Inflation Protected 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 Inflation Protected. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Inflation Protected.
Diversification Opportunities for Simt Multi-asset and Inflation Protected
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Simt and Inflation is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Inflation Protected Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Protected 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 Inflation Protected. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Protected has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Inflation Protected go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Inflation Protected
Assuming the 90 days horizon Simt Multi Asset Inflation is expected to generate 0.46 times more return on investment than Inflation Protected. However, Simt Multi Asset Inflation is 2.18 times less risky than Inflation Protected. It trades about 0.1 of its potential returns per unit of risk. Inflation Protected Bond Fund is currently generating about 0.01 per unit of risk. If you would invest 770.00 in Simt Multi Asset Inflation on October 26, 2024 and sell it today you would earn a total of 11.00 from holding Simt Multi Asset Inflation or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Inflation Protected Bond Fund
Performance |
| Timeline |
| Simt Multi Asset |
| Inflation Protected |
Simt Multi-asset and Inflation Protected Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Inflation Protected
The main advantage of trading using opposite Simt Multi-asset and Inflation Protected positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Inflation Protected 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 Inflation Protected will offset losses from the drop in Inflation Protected's long position.| Simt Multi-asset vs. Tax Managed Large Cap | Simt Multi-asset vs. Virtus Nfj Large Cap | Simt Multi-asset vs. Qs Large Cap | Simt Multi-asset vs. Large Cap Growth Profund |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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