Correlation Between Simt Small and Siit World
Can any of the company-specific risk be diversified away by investing in both Simt Small and Siit World 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 World 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 World Select, you can compare the effects of market volatilities on Simt Small and Siit World 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 World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Small and Siit World.
Diversification Opportunities for Simt Small and Siit World
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simt and Siit is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Simt Small Cap and Siit World Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit World Select 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 World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit World Select has no effect on the direction of Simt Small i.e., Simt Small and Siit World go up and down completely randomly.
Pair Corralation between Simt Small and Siit World
Assuming the 90 days horizon Simt Small Cap is expected to generate 2.37 times more return on investment than Siit World. However, Simt Small is 2.37 times more volatile than Siit World Select. It trades about 0.11 of its potential returns per unit of risk. Siit World Select is currently generating about 0.03 per unit of risk. If you would invest 3,809 in Simt Small Cap on September 13, 2024 and sell it today you would earn a total of 221.00 from holding Simt Small Cap or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Small Cap vs. Siit World Select
Performance |
| Timeline |
| Simt Small Cap |
| Siit World Select |
Simt Small and Siit World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Small and Siit World
The main advantage of trading using opposite Simt Small and Siit World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Small position performs unexpectedly, Siit World 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 World will offset losses from the drop in Siit World's long position.| Simt Small vs. Chase Growth Fund | Simt Small vs. Small Pany Growth | Simt Small vs. Champlain Mid Cap | Simt Small vs. Needham Aggressive Growth |
| Siit World vs. Simt Multi Asset Accumulation | Siit World vs. Saat Market Growth | Siit World vs. Simt Real Return | Siit World vs. Simt Small Cap |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |