Correlation Between Simt Multi-asset and Inverse High
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Inverse High 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 Inverse High 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 Inverse High Yield, you can compare the effects of market volatilities on Simt Multi-asset and Inverse High 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 Inverse High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Inverse High.
Diversification Opportunities for Simt Multi-asset and Inverse High
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simt and Inverse is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Inverse High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse High Yield 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 Inverse High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse High Yield has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Inverse High go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Inverse High
Assuming the 90 days horizon Simt Multi Asset Inflation is expected to generate 0.48 times more return on investment than Inverse High. However, Simt Multi Asset Inflation is 2.08 times less risky than Inverse High. It trades about 0.54 of its potential returns per unit of risk. Inverse High Yield is currently generating about -0.07 per unit of risk. If you would invest 768.00 in Simt Multi Asset Inflation on November 4, 2024 and sell it today you would earn a total of 15.00 from holding Simt Multi Asset Inflation or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Inverse High Yield
Performance |
| Timeline |
| Simt Multi Asset |
| Inverse High Yield |
Simt Multi-asset and Inverse High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Inverse High
The main advantage of trading using opposite Simt Multi-asset and Inverse High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Inverse High 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 Inverse High will offset losses from the drop in Inverse High's long position.| Simt Multi-asset vs. Calvert Developed Market | Simt Multi-asset vs. Aqr Sustainable Long Short | Simt Multi-asset vs. Aqr Equity Market | Simt Multi-asset vs. Mid Cap 15x Strategy |
| Inverse High vs. Msift High Yield | Inverse High vs. Dunham High Yield | Inverse High vs. Buffalo High Yield | Inverse High vs. Six Circles Credit |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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