Correlation Between IShares Trust and Simt Sp
Can any of the company-specific risk be diversified away by investing in both IShares Trust and Simt Sp 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 IShares Trust and Simt Sp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and Simt Sp 500, you can compare the effects of market volatilities on IShares Trust and Simt Sp 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 IShares Trust with a short position of Simt Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Simt Sp.
Diversification Opportunities for IShares Trust and Simt Sp
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Simt is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Simt Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Sp 500 and IShares Trust 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 iShares Trust are associated (or correlated) with Simt Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Sp 500 has no effect on the direction of IShares Trust i.e., IShares Trust and Simt Sp go up and down completely randomly.
Pair Corralation between IShares Trust and Simt Sp
Given the investment horizon of 90 days IShares Trust is expected to generate 3.26 times less return on investment than Simt Sp. But when comparing it to its historical volatility, iShares Trust is 4.24 times less risky than Simt Sp. It trades about 0.29 of its potential returns per unit of risk. Simt Sp 500 is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 9,622 in Simt Sp 500 on June 7, 2025 and sell it today you would earn a total of 821.00 from holding Simt Sp 500 or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Trust vs. Simt Sp 500
Performance |
| Timeline |
| iShares Trust |
| Simt Sp 500 |
IShares Trust and Simt Sp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Simt Sp
The main advantage of trading using opposite IShares Trust and Simt Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, Simt Sp 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 Sp will offset losses from the drop in Simt Sp's long position.| IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. Simplify Volatility Premium | IShares Trust vs. Tidal Trust II |
| Simt Sp vs. Simt Small Cap | Simt Sp vs. Simt Small Cap | Simt Sp vs. Simt Large Cap | Simt Sp 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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