Correlation Between Bayer AG and Simt Us
Can any of the company-specific risk be diversified away by investing in both Bayer AG and Simt Us 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 Bayer AG and Simt Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayer AG PK and Simt Managed Volatility, you can compare the effects of market volatilities on Bayer AG and Simt Us 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 Bayer AG with a short position of Simt Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayer AG and Simt Us.
Diversification Opportunities for Bayer AG and Simt Us
Pay attention - limited upside
The 3 months correlation between Bayer and Simt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bayer AG PK and Simt Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Managed Volatility and Bayer AG 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 Bayer AG PK are associated (or correlated) with Simt Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Managed Volatility has no effect on the direction of Bayer AG i.e., Bayer AG and Simt Us go up and down completely randomly.
Pair Corralation between Bayer AG and Simt Us
If you would invest 1,447 in Simt Managed Volatility on May 28, 2025 and sell it today you would earn a total of 59.00 from holding Simt Managed Volatility or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bayer AG PK vs. Simt Managed Volatility
Performance |
| Timeline |
| Bayer AG PK |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Simt Managed Volatility |
Bayer AG and Simt Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayer AG and Simt Us
The main advantage of trading using opposite Bayer AG and Simt Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayer AG position performs unexpectedly, Simt Us 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 Us will offset losses from the drop in Simt Us' long position.| Bayer AG vs. Novartis AG ADR | Bayer AG vs. Sanofi ADR | Bayer AG vs. AstraZeneca PLC ADR | Bayer AG vs. GlaxoSmithKline PLC ADR |
| Simt Us vs. Simt Multi Asset Accumulation | Simt Us vs. Saat Market Growth | Simt Us vs. Simt Real Return | Simt Us 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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