Correlation Between Simt Large and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Simt Large 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 Simt Large 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 Simt Large Cap and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Simt Large 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 Simt Large with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Large and Simt Multi-asset.
Diversification Opportunities for Simt Large and Simt Multi-asset
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simt and Simt is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Simt Large Cap 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 Simt Large 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 Large Cap 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 Simt Large i.e., Simt Large and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Simt Large and Simt Multi-asset
Assuming the 90 days horizon Simt Large Cap is expected to generate 1.91 times more return on investment than Simt Multi-asset. However, Simt Large is 1.91 times more volatile than Simt Multi Asset Accumulation. It trades about 0.29 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.28 per unit of risk. If you would invest 2,753 in Simt Large Cap on September 1, 2024 and sell it today you would earn a total of 144.00 from holding Simt Large Cap or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Simt Large Cap vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Simt Large Cap |
| Simt Multi Asset |
Simt Large and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Large and Simt Multi-asset
The main advantage of trading using opposite Simt Large and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Large 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.| Simt Large vs. Simt Multi Asset Accumulation | Simt Large vs. Saat Market Growth | Simt Large vs. Simt Small Cap | Simt Large vs. Siit Screened World |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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