Correlation Between Siit Opportunistic and Simt High
Can any of the company-specific risk be diversified away by investing in both Siit Opportunistic and Simt High 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 High 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 High Yield, you can compare the effects of market volatilities on Siit Opportunistic and Simt High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Opportunistic and Simt High.
Diversification Opportunities for Siit Opportunistic and Simt High
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 Opportunistic Income and Simt High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt High Yield has no effect on the direction of Siit Opportunistic i.e., Siit Opportunistic and Simt High go up and down completely randomly.
Pair Corralation between Siit Opportunistic and Simt High
Assuming the 90 days horizon Siit Opportunistic is expected to generate 2.14 times less return on investment than Simt High. But when comparing it to its historical volatility, Siit Opportunistic Income is 3.13 times less risky than Simt High. It trades about 0.43 of its potential returns per unit of risk. Simt High Yield is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 498.00 in Simt High Yield on May 27, 2025 and sell it today you would earn a total of 19.00 from holding Simt High Yield or generate 3.82% 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 High Yield
Performance |
| Timeline |
| Siit Opportunistic Income |
| Simt High Yield |
Siit Opportunistic and Simt High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Opportunistic and Simt High
The main advantage of trading using opposite Siit Opportunistic and Simt High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Opportunistic position performs unexpectedly, Simt High 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 High will offset losses from the drop in Simt High's long position.| Siit Opportunistic vs. Small Cap Value Fund | Siit Opportunistic vs. Perkins Small Cap | Siit Opportunistic vs. Valic Company I | Siit Opportunistic vs. Vanguard Small Cap Value |
| Simt High vs. American Funds Tax Exempt | Simt High vs. Cmg Ultra Short | Simt High vs. Astor Longshort Fund | Simt High vs. Leader Short Term Bond |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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