Correlation Between Simt Multi and Valic Company
Can any of the company-specific risk be diversified away by investing in both Simt Multi and Valic Company 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 Valic Company 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 Valic Company I, you can compare the effects of market volatilities on Simt Multi and Valic Company 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 Valic Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Valic Company.
Diversification Opportunities for Simt Multi and Valic Company
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simt and Valic is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Valic Company I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valic Company I 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 Valic Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valic Company I has no effect on the direction of Simt Multi i.e., Simt Multi and Valic Company go up and down completely randomly.
Pair Corralation between Simt Multi and Valic Company
Assuming the 90 days horizon Simt Multi is expected to generate 3.44 times less return on investment than Valic Company. But when comparing it to its historical volatility, Simt Multi Asset Inflation is 3.06 times less risky than Valic Company. It trades about 0.08 of its potential returns per unit of risk. Valic Company I is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,082 in Valic Company I on September 14, 2024 and sell it today you would earn a total of 203.00 from holding Valic Company I or generate 18.76% 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. Valic Company I
Performance |
| Timeline |
| Simt Multi Asset |
| Valic Company I |
Simt Multi and Valic Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi and Valic Company
The main advantage of trading using opposite Simt Multi and Valic Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi position performs unexpectedly, Valic Company 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 Valic Company will offset losses from the drop in Valic Company's long position.| Simt Multi vs. Aam Select Income | Simt Multi vs. T Rowe Price | Simt Multi vs. Qs Large Cap | Simt Multi vs. Ab Value Fund |
| Valic Company vs. Commodities Strategy Fund | Valic Company vs. Auer Growth Fund | Valic Company vs. Commonwealth Global Fund | Valic Company vs. Eic Value Fund |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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