Correlation Between Simt Multi-asset and Select Us
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Select Us 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 Select Us 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 Select Equity Fund, you can compare the effects of market volatilities on Simt Multi-asset and Select Us 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 Select Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Select Us.
Diversification Opportunities for Simt Multi-asset and Select Us
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simt and Select is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Select Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Equity 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 Select Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Equity has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Select Us go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Select Us
Assuming the 90 days horizon Simt Multi-asset is expected to generate 1.07 times less return on investment than Select Us. But when comparing it to its historical volatility, Simt Multi Asset Inflation is 3.63 times less risky than Select Us. It trades about 0.55 of its potential returns per unit of risk. Select Equity Fund is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,546 in Select Equity Fund on November 9, 2024 and sell it today you would earn a total of 40.00 from holding Select Equity Fund or generate 2.59% 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. Select Equity Fund
Performance |
| Timeline |
| Simt Multi Asset |
| Select Equity |
Simt Multi-asset and Select Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Select Us
The main advantage of trading using opposite Simt Multi-asset and Select Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Select Us 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 Select Us will offset losses from the drop in Select Us' long position.| Simt Multi-asset vs. Ab Bond Inflation | Simt Multi-asset vs. Goldman Sachs Short | Simt Multi-asset vs. Dreyfusstandish Global Fixed | Simt Multi-asset vs. Gmo High Yield |
| Select Us vs. Goldman Sachs Short | Select Us vs. Dreyfusstandish Global Fixed | Select Us vs. Ab Global Bond | Select Us 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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