Correlation Between Simt Small and Siit Us
Can any of the company-specific risk be diversified away by investing in both Simt Small and Siit 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 Small and Siit Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Small Cap and Siit Equity Factor, you can compare the effects of market volatilities on Simt Small and Siit 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 Small with a short position of Siit Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Small and Siit Us.
Diversification Opportunities for Simt Small and Siit Us
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Siit is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Simt Small Cap and Siit Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Equity Factor and Simt Small 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 Small Cap are associated (or correlated) with Siit Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Equity Factor has no effect on the direction of Simt Small i.e., Simt Small and Siit Us go up and down completely randomly.
Pair Corralation between Simt Small and Siit Us
Assuming the 90 days horizon Simt Small is expected to generate 1.26 times less return on investment than Siit Us. In addition to that, Simt Small is 1.51 times more volatile than Siit Equity Factor. It trades about 0.06 of its total potential returns per unit of risk. Siit Equity Factor is currently generating about 0.12 per unit of volatility. If you would invest 1,042 in Siit Equity Factor on September 3, 2024 and sell it today you would earn a total of 569.00 from holding Siit Equity Factor or generate 54.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Small Cap vs. Siit Equity Factor
Performance |
| Timeline |
| Simt Small Cap |
| Siit Equity Factor |
Simt Small and Siit Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Small and Siit Us
The main advantage of trading using opposite Simt Small and Siit Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Small position performs unexpectedly, Siit 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 Siit Us will offset losses from the drop in Siit Us' long position.| Simt Small vs. Goldman Sachs Short | Simt Small vs. Invesco Gold Special | Simt Small vs. Oppenheimer Gold Special | Simt Small vs. Sprott Gold Equity |
| Siit Us vs. Jhancock Short Duration | Siit Us vs. Maryland Short Term Tax Free | Siit Us vs. Siit Ultra Short | Siit Us vs. Locorr Longshort Modities |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |