Correlation Between Highland Longshort and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Highland Longshort 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 Highland Longshort 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 Highland Longshort Healthcare and Simt Multi Asset Inflation, you can compare the effects of market volatilities on Highland Longshort 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 Highland Longshort with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Longshort and Simt Multi-asset.
Diversification Opportunities for Highland Longshort and Simt Multi-asset
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Highland and Simt is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Highland Longshort 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 Highland Longshort Healthcare 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 Highland Longshort i.e., Highland Longshort and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Highland Longshort and Simt Multi-asset
Assuming the 90 days horizon Highland Longshort Healthcare is expected to generate 1.42 times more return on investment than Simt Multi-asset. However, Highland Longshort is 1.42 times more volatile than Simt Multi Asset Inflation. It trades about 0.25 of its potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.32 per unit of risk. If you would invest 1,697 in Highland Longshort Healthcare on June 11, 2025 and sell it today you would earn a total of 26.00 from holding Highland Longshort Healthcare or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highland Longshort Healthcare vs. Simt Multi Asset Inflation
Performance |
| Timeline |
| Highland Longshort |
| Simt Multi Asset |
Highland Longshort and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Longshort and Simt Multi-asset
The main advantage of trading using opposite Highland Longshort and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Longshort 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.| Highland Longshort vs. Tfa Alphagen Growth | Highland Longshort vs. Chase Growth Fund | Highland Longshort vs. L Abbett Growth | Highland Longshort vs. Goldman Sachs Equity |
| Simt Multi-asset vs. Blackrock Global Longshort | Simt Multi-asset vs. Barings Active Short | Simt Multi-asset vs. Nuveen Short Term | Simt Multi-asset vs. Prudential Short Duration |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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