Correlation Between Cref Inflation-linked and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Cref Inflation-linked 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 Cref Inflation-linked 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 Cref Inflation Linked Bond and Simt Multi Asset Inflation, you can compare the effects of market volatilities on Cref Inflation-linked 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 Cref Inflation-linked with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation-linked and Simt Multi-asset.
Diversification Opportunities for Cref Inflation-linked and Simt Multi-asset
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cref and Simt is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond 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 Cref Inflation-linked 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 Cref Inflation Linked Bond 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 Cref Inflation-linked i.e., Cref Inflation-linked and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Cref Inflation-linked and Simt Multi-asset
Assuming the 90 days trading horizon Cref Inflation Linked Bond is expected to generate 0.68 times more return on investment than Simt Multi-asset. However, Cref Inflation Linked Bond is 1.47 times less risky than Simt Multi-asset. It trades about 0.31 of its potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.08 per unit of risk. If you would invest 8,806 in Cref Inflation Linked Bond on June 12, 2025 and sell it today you would earn a total of 283.00 from holding Cref Inflation Linked Bond or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. Simt Multi Asset Inflation
Performance |
| Timeline |
| Cref Inflation Linked |
| Simt Multi Asset |
Cref Inflation-linked and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation-linked and Simt Multi-asset
The main advantage of trading using opposite Cref Inflation-linked and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation-linked 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.| Cref Inflation-linked vs. Vanguard Total Stock | Cref Inflation-linked vs. Vanguard 500 Index | Cref Inflation-linked vs. Vanguard Total Stock | Cref Inflation-linked vs. Vanguard Total Stock |
| Simt Multi-asset vs. Morningstar Unconstrained Allocation | Simt Multi-asset vs. Thrivent High Yield | Simt Multi-asset vs. High Yield Municipal Fund | Simt Multi-asset vs. Via Renewables |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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