Correlation Between Simt Multi-asset and Sei Insti
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Sei Insti 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 Simt Multi-asset and Sei Insti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Accumulation and Sei Insti Mgd, you can compare the effects of market volatilities on Simt Multi-asset and Sei Insti 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 Simt Multi-asset with a short position of Sei Insti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Sei Insti.
Diversification Opportunities for Simt Multi-asset and Sei Insti
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Sei is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Sei Insti Mgd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sei Insti Mgd and Simt Multi-asset 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 Simt Multi Asset Accumulation are associated (or correlated) with Sei Insti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sei Insti Mgd has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Sei Insti go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Sei Insti
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to generate 1.39 times more return on investment than Sei Insti. However, Simt Multi-asset is 1.39 times more volatile than Sei Insti Mgd. It trades about 0.22 of its potential returns per unit of risk. Sei Insti Mgd is currently generating about 0.15 per unit of risk. If you would invest 718.00 in Simt Multi Asset Accumulation on May 27, 2025 and sell it today you would earn a total of 41.00 from holding Simt Multi Asset Accumulation or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Accumulation vs. Sei Insti Mgd
Performance |
| Timeline |
| Simt Multi Asset |
| Sei Insti Mgd |
Simt Multi-asset and Sei Insti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Sei Insti
The main advantage of trading using opposite Simt Multi-asset and Sei Insti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Sei Insti 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 Sei Insti will offset losses from the drop in Sei Insti's long position.| Simt Multi-asset vs. Simt Mid Cap | Simt Multi-asset vs. Sit Emerging Markets | Simt Multi-asset vs. Simt High Yield | Simt Multi-asset vs. Simt Real Return |
| Sei Insti vs. Simt Mid Cap | Sei Insti vs. Sit Emerging Markets | Sei Insti vs. Simt High Yield | Sei Insti vs. Simt Multi Asset Accumulation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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