Correlation Between Simt Multi and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Simt Multi and Old Westbury 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 and Old Westbury 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 Old Westbury Large, you can compare the effects of market volatilities on Simt Multi and Old Westbury 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 with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Old Westbury.
Diversification Opportunities for Simt Multi and Old Westbury
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simt and Old is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Old Westbury Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Large and Simt Multi 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Large has no effect on the direction of Simt Multi i.e., Simt Multi and Old Westbury go up and down completely randomly.
Pair Corralation between Simt Multi and Old Westbury
Assuming the 90 days horizon Simt Multi is expected to generate 11.69 times less return on investment than Old Westbury. But when comparing it to its historical volatility, Simt Multi Asset Inflation is 3.02 times less risky than Old Westbury. It trades about 0.02 of its potential returns per unit of risk. Old Westbury Large is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,447 in Old Westbury Large on September 22, 2024 and sell it today you would earn a total of 547.00 from holding Old Westbury Large or generate 37.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Old Westbury Large
Performance |
| Timeline |
| Simt Multi Asset |
| Old Westbury Large |
Simt Multi and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi and Old Westbury
The main advantage of trading using opposite Simt Multi and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Simt Multi vs. Simt Multi Asset Accumulation | Simt Multi vs. Saat Market Growth | Simt Multi vs. Simt Real Return | Simt Multi vs. Simt Small Cap |
| Old Westbury vs. Old Westbury All | Old Westbury vs. Old Westbury California | Old Westbury vs. Old Westbury Credit | Old Westbury vs. Old Westbury Fixed |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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