Correlation Between Siit Small and Simt Large
Can any of the company-specific risk be diversified away by investing in both Siit Small and Simt Large 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 Small and Simt Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Small Mid and Simt Large Cap, you can compare the effects of market volatilities on Siit Small and Simt Large 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 Small with a short position of Simt Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Simt Large.
Diversification Opportunities for Siit Small and Simt Large
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Simt is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Simt Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Large Cap and Siit 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 Siit Small Mid are associated (or correlated) with Simt Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Large Cap has no effect on the direction of Siit Small i.e., Siit Small and Simt Large go up and down completely randomly.
Pair Corralation between Siit Small and Simt Large
Assuming the 90 days horizon Siit Small Mid is expected to generate 1.47 times more return on investment than Simt Large. However, Siit Small is 1.47 times more volatile than Simt Large Cap. It trades about 0.1 of its potential returns per unit of risk. Simt Large Cap is currently generating about 0.11 per unit of risk. If you would invest 1,019 in Siit Small Mid on September 3, 2024 and sell it today you would earn a total of 159.00 from holding Siit Small Mid or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Mid vs. Simt Large Cap
Performance |
| Timeline |
| Siit Small Mid |
| Simt Large Cap |
Siit Small and Simt Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Simt Large
The main advantage of trading using opposite Siit Small and Simt Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Simt Large 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 Large will offset losses from the drop in Simt Large's long position.| Siit Small vs. Artisan High Income | Siit Small vs. Fidelity Capital Income | Siit Small vs. Pioneer High Yield | Siit Small vs. Guggenheim High Yield |
| Simt Large vs. Simt Mid Cap | Simt Large vs. Simt High Yield | Simt Large vs. Simt Multi Asset Accumulation | Simt Large vs. Simt Real Return |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |