Correlation Between Strategic Allocation: and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Strategic Allocation: and Simt Multi 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 Strategic Allocation: and Simt Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Allocation Aggressive and Simt Multi Asset Income, you can compare the effects of market volatilities on Strategic Allocation: and Simt Multi 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 Strategic Allocation: with a short position of Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Allocation: and Simt Multi.
Diversification Opportunities for Strategic Allocation: and Simt Multi
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Strategic and Simt is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Allocation Aggressiv and Simt Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Strategic Allocation: 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 Strategic Allocation Aggressive are associated (or correlated) with Simt Multi. 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 Strategic Allocation: i.e., Strategic Allocation: and Simt Multi go up and down completely randomly.
Pair Corralation between Strategic Allocation: and Simt Multi
Assuming the 90 days horizon Strategic Allocation Aggressive is expected to generate 3.91 times more return on investment than Simt Multi. However, Strategic Allocation: is 3.91 times more volatile than Simt Multi Asset Income. It trades about 0.37 of its potential returns per unit of risk. Simt Multi Asset Income is currently generating about 0.49 per unit of risk. If you would invest 723.00 in Strategic Allocation Aggressive on April 20, 2025 and sell it today you would earn a total of 107.00 from holding Strategic Allocation Aggressive or generate 14.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Allocation Aggressiv vs. Simt Multi Asset Income
Performance |
| Timeline |
| Strategic Allocation: |
| Simt Multi Asset |
Strategic Allocation: and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Allocation: and Simt Multi
The main advantage of trading using opposite Strategic Allocation: and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Allocation: position performs unexpectedly, Simt Multi 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 will offset losses from the drop in Simt Multi's long position.| Strategic Allocation: vs. Mid Cap Value | Strategic Allocation: vs. Equity Growth Fund | Strategic Allocation: vs. Income Growth Fund | Strategic Allocation: vs. Diversified Bond Fund |
| Simt Multi vs. Simt E Fixed | Simt Multi vs. Sit Emerging Markets | Simt Multi vs. Simt Global Managed | Simt Multi vs. Sit International Equity |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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