Correlation Between Siit Large and Simt Us
Can any of the company-specific risk be diversified away by investing in both Siit Large 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 Siit Large and Simt Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Large Cap and Simt Managed Volatility, you can compare the effects of market volatilities on Siit Large 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 Siit Large with a short position of Simt Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Simt Us.
Diversification Opportunities for Siit Large and Simt Us
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Simt is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap 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 Siit Large 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 Large Cap 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 Siit Large i.e., Siit Large and Simt Us go up and down completely randomly.
Pair Corralation between Siit Large and Simt Us
Assuming the 90 days horizon Siit Large Cap is expected to generate 1.1 times more return on investment than Simt Us. However, Siit Large is 1.1 times more volatile than Simt Managed Volatility. It trades about 0.23 of its potential returns per unit of risk. Simt Managed Volatility is currently generating about 0.1 per unit of risk. If you would invest 19,768 in Siit Large Cap on June 5, 2025 and sell it today you would earn a total of 1,782 from holding Siit Large Cap or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Simt Managed Volatility
Performance |
| Timeline |
| Siit Large Cap |
| Simt Managed Volatility |
Siit Large and Simt Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Simt Us
The main advantage of trading using opposite Siit Large and Simt Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large 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.| Siit Large vs. Siit Dynamic Asset | Siit Large vs. Columbia Large Cap | Siit Large vs. Janus Growth And | Siit Large vs. Nationwide Sp 500 |
| Simt Us vs. Simt Global Managed | Simt Us vs. Simt High Yield | Simt Us vs. Sdit Short Duration | Simt Us vs. Simt Real Return |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities |