Correlation Between Simt Core and Sdit Short
Can any of the company-specific risk be diversified away by investing in both Simt Core and Sdit Short 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 Core and Sdit Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt E Fixed and Sdit Short Duration, you can compare the effects of market volatilities on Simt Core and Sdit Short 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 Core with a short position of Sdit Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Core and Sdit Short.
Diversification Opportunities for Simt Core and Sdit Short
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and Sdit is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Simt E Fixed and Sdit Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sdit Short Duration and Simt Core 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 E Fixed are associated (or correlated) with Sdit Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sdit Short Duration has no effect on the direction of Simt Core i.e., Simt Core and Sdit Short go up and down completely randomly.
Pair Corralation between Simt Core and Sdit Short
Assuming the 90 days horizon Simt E Fixed is expected to generate 2.51 times more return on investment than Sdit Short. However, Simt Core is 2.51 times more volatile than Sdit Short Duration. It trades about 0.05 of its potential returns per unit of risk. Sdit Short Duration is currently generating about 0.09 per unit of risk. If you would invest 939.00 in Simt E Fixed on April 13, 2025 and sell it today you would earn a total of 10.00 from holding Simt E Fixed or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Simt E Fixed vs. Sdit Short Duration
Performance |
| Timeline |
| Simt E Fixed |
| Sdit Short Duration |
Simt Core and Sdit Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Core and Sdit Short
The main advantage of trading using opposite Simt Core and Sdit Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Core position performs unexpectedly, Sdit Short 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 Sdit Short will offset losses from the drop in Sdit Short's long position.| Simt Core vs. Sit Emerging Markets | Simt Core vs. Simt Multi Asset Income | Simt Core vs. Sit International Equity | Simt Core vs. Simt Global Managed |
| Sdit Short vs. Virtus Multi Sector Short | Sdit Short vs. Lord Abbett Short | Sdit Short vs. Nuveen Short Term | Sdit Short vs. Segall Bryant Hamill |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |