Correlation Between Siit Opportunistic and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Siit Opportunistic 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 Siit Opportunistic and Simt Multi 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 Income, you can compare the effects of market volatilities on Siit Opportunistic 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 Siit Opportunistic with a short position of Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Opportunistic and Simt Multi.
Diversification Opportunities for Siit Opportunistic and Simt Multi
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 Multi Asset Income 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. 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 go up and down completely randomly.
Pair Corralation between Siit Opportunistic and Simt Multi
Assuming the 90 days horizon Siit Opportunistic is expected to generate 2.03 times less return on investment than Simt Multi. But when comparing it to its historical volatility, Siit Opportunistic Income is 2.13 times less risky than Simt Multi. It trades about 0.43 of its potential returns per unit of risk. Simt Multi Asset Income is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 996.00 in Simt Multi Asset Income on May 26, 2025 and sell it today you would earn a total of 36.00 from holding Simt Multi Asset Income or generate 3.61% 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 Income
Performance |
| Timeline |
| Siit Opportunistic Income |
| Simt Multi Asset |
Siit Opportunistic and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Opportunistic and Simt Multi
The main advantage of trading using opposite Siit Opportunistic and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Opportunistic 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.| Siit Opportunistic vs. Ab Bond Inflation | Siit Opportunistic vs. Multisector Bond Sma | Siit Opportunistic vs. Bbh Intermediate Municipal | Siit Opportunistic vs. Guidemark E Fixed |
| 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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