Correlation Between Simt Multi-asset and Sit International
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Sit International 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 Sit International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Income and Sit International Equity, you can compare the effects of market volatilities on Simt Multi-asset and Sit International 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 Sit International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Sit International.
Diversification Opportunities for Simt Multi-asset and Sit International
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Simt and Sit is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Income and Sit International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit International 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 Income are associated (or correlated) with Sit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit International Equity has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Sit International go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Sit International
Assuming the 90 days horizon Simt Multi Asset Income is expected to generate 0.3 times more return on investment than Sit International. However, Simt Multi Asset Income is 3.31 times less risky than Sit International. It trades about 0.15 of its potential returns per unit of risk. Sit International Equity is currently generating about -0.24 per unit of risk. If you would invest 998.00 in Simt Multi Asset Income on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Simt Multi Asset Income or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Income vs. Sit International Equity
Performance |
| Timeline |
| Simt Multi Asset |
| Sit International Equity |
Simt Multi-asset and Sit International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Sit International
The main advantage of trading using opposite Simt Multi-asset and Sit International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Sit International 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 Sit International will offset losses from the drop in Sit International's long position.| Simt Multi-asset vs. All Asset Fund | Simt Multi-asset vs. HUMANA INC | Simt Multi-asset vs. Aquagold International | Simt Multi-asset vs. Barloworld Ltd ADR |
| Sit International vs. Sit Emerging Markets | Sit International vs. Simt E Fixed | Sit International vs. Simt Multi Asset Income | Sit International vs. Simt Global Managed |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |