Correlation Between Simt Multi-asset and Great West
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Great West 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 Great West 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 Great West E Strategies, you can compare the effects of market volatilities on Simt Multi-asset and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Great West.
Diversification Opportunities for Simt Multi-asset and Great West
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Simt and Great is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Great West E Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West E 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West E has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Great West go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Great West
Assuming the 90 days horizon Simt Multi Asset Inflation is expected to generate 0.35 times more return on investment than Great West. However, Simt Multi Asset Inflation is 2.86 times less risky than Great West. It trades about 0.1 of its potential returns per unit of risk. Great West E Strategies is currently generating about 0.0 per unit of risk. If you would invest 775.00 in Simt Multi Asset Inflation on October 23, 2024 and sell it today you would earn a total of 7.00 from holding Simt Multi Asset Inflation or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Great West E Strategies
Performance |
| Timeline |
| Simt Multi Asset |
| Great West E |
Simt Multi-asset and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Great West
The main advantage of trading using opposite Simt Multi-asset and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Simt Multi-asset vs. Hartford Municipal Income | Simt Multi-asset vs. Old Westbury Municipal | Simt Multi-asset vs. Franklin Adjustable Government | Simt Multi-asset vs. Ishares Municipal Bond |
| Great West vs. Simt Multi Asset Inflation | Great West vs. Guidepath Managed Futures | Great West vs. T Rowe Price | Great West vs. Ab Bond Inflation |
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 Stocks Directory module to find actively traded stocks across global markets.
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