Correlation Between Simt Core and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Simt Core 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 Simt Core 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 Simt E Fixed and Simt Multi Asset Inflation, you can compare the effects of market volatilities on Simt Core 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 Simt Core with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Core and Simt Multi-asset.
Diversification Opportunities for Simt Core and Simt Multi-asset
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and Simt is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Simt E Fixed 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 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 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 Simt Core i.e., Simt Core and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Simt Core and Simt Multi-asset
Assuming the 90 days horizon Simt Core is expected to generate 1.18 times less return on investment than Simt Multi-asset. But when comparing it to its historical volatility, Simt E Fixed is 1.01 times less risky than Simt Multi-asset. It trades about 0.14 of its potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 797.00 in Simt Multi Asset Inflation on April 9, 2025 and sell it today you would earn a total of 7.00 from holding Simt Multi Asset Inflation or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt E Fixed vs. Simt Multi Asset Inflation
Performance |
| Timeline |
| Simt E Fixed |
| Simt Multi Asset |
Simt Core and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Core and Simt Multi-asset
The main advantage of trading using opposite Simt Core and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Core 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.| Simt Core vs. Simt Multi Asset Accumulation | Simt Core vs. Saat Market Growth | Simt Core vs. Simt Real Return | Simt Core vs. Simt Small Cap |
| Simt Multi-asset vs. Fabwx | Simt Multi-asset vs. Fbanjx | Simt Multi-asset vs. Flakqx | Simt Multi-asset vs. Wabmsx |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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