Correlation Between Mh Elite and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Mh Elite 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 Mh Elite 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 Mh Elite Fund and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Mh Elite 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 Mh Elite with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mh Elite and Simt Multi-asset.
Diversification Opportunities for Mh Elite and Simt Multi-asset
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MHEFX and Simt is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mh Elite Fund and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Mh Elite 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 Mh Elite Fund 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 Mh Elite i.e., Mh Elite and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Mh Elite and Simt Multi-asset
Assuming the 90 days horizon Mh Elite Fund is expected to generate 1.49 times more return on investment than Simt Multi-asset. However, Mh Elite is 1.49 times more volatile than Simt Multi Asset Accumulation. It trades about 0.21 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.23 per unit of risk. If you would invest 847.00 in Mh Elite Fund on June 6, 2025 and sell it today you would earn a total of 67.00 from holding Mh Elite Fund or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mh Elite Fund vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Mh Elite Fund |
| Simt Multi Asset |
Mh Elite and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mh Elite and Simt Multi-asset
The main advantage of trading using opposite Mh Elite and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mh Elite 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.| Mh Elite vs. Omni Small Cap Value | Mh Elite vs. Applied Finance Explorer | Mh Elite vs. Northern Small Cap | Mh Elite vs. Valic Company I |
| Simt Multi-asset vs. Calamos Dynamic Convertible | Simt Multi-asset vs. Fidelity Sai Convertible | Simt Multi-asset vs. Rationalpier 88 Convertible | Simt Multi-asset vs. Gabelli Convertible And |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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