Correlation Between Siit Screened and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Siit Screened and Simt Multi-asset 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 Siit Screened and Simt Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Screened World and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Siit Screened and Simt Multi-asset 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 Siit Screened with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Screened and Simt Multi-asset.
Diversification Opportunities for Siit Screened and Simt Multi-asset
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Simt is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Siit Screened World and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Siit Screened 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 Siit Screened World are associated (or correlated) with Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Siit Screened i.e., Siit Screened and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Siit Screened and Simt Multi-asset
Assuming the 90 days horizon Siit Screened is expected to generate 1.47 times less return on investment than Simt Multi-asset. In addition to that, Siit Screened is 1.27 times more volatile than Simt Multi Asset Accumulation. It trades about 0.03 of its total potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.05 per unit of volatility. If you would invest 732.00 in Simt Multi Asset Accumulation on September 3, 2024 and sell it today you would earn a total of 24.00 from holding Simt Multi Asset Accumulation or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Screened World vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Siit Screened World |
| Simt Multi Asset |
Siit Screened and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Screened and Simt Multi-asset
The main advantage of trading using opposite Siit Screened and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Screened position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset's long position.| Siit Screened vs. T Rowe Price | Siit Screened vs. Qs Moderate Growth | Siit Screened vs. Champlain Mid Cap | Siit Screened vs. L Abbett Growth |
| Simt Multi-asset vs. Eic Value Fund | Simt Multi-asset vs. Commodities Strategy Fund | Simt Multi-asset vs. Commonwealth Global Fund | Simt Multi-asset vs. Issachar Fund Class |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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