Correlation Between Siit Opportunistic and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Siit Opportunistic 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 Opportunistic 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 Opportunistic Income and Simt Multi Asset Capital, you can compare the effects of market volatilities on Siit Opportunistic 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 Opportunistic with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Opportunistic and Simt Multi-asset.
Diversification Opportunities for Siit Opportunistic and Simt Multi-asset
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Simt is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Siit Opportunistic Income and Simt Multi Asset Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Siit Opportunistic 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 Opportunistic Income 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 Opportunistic i.e., Siit Opportunistic and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Siit Opportunistic and Simt Multi-asset
Assuming the 90 days horizon Siit Opportunistic is expected to generate 1.48 times less return on investment than Simt Multi-asset. But when comparing it to its historical volatility, Siit Opportunistic Income is 1.95 times less risky than Simt Multi-asset. It trades about 0.43 of its potential returns per unit of risk. Simt Multi Asset Capital is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 990.00 in Simt Multi Asset Capital on May 30, 2025 and sell it today you would earn a total of 26.00 from holding Simt Multi Asset Capital or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Opportunistic Income vs. Simt Multi Asset Capital
Performance |
| Timeline |
| Siit Opportunistic Income |
| Simt Multi Asset |
Siit Opportunistic and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Opportunistic and Simt Multi-asset
The main advantage of trading using opposite Siit Opportunistic and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Opportunistic 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 Opportunistic vs. Eventide Healthcare Life | Siit Opportunistic vs. Health Care Ultrasector | Siit Opportunistic vs. Schwab Health Care | Siit Opportunistic vs. Lord Abbett Health |
| Simt Multi-asset vs. Fm Investments Large | Simt Multi-asset vs. Old Westbury Large | Simt Multi-asset vs. Qs Moderate Growth | Simt Multi-asset vs. T Rowe Price |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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