Correlation Between Simt Multi and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Simt Multi 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 Multi 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 Multi Asset Capital and Simt Multi Asset Income, you can compare the effects of market volatilities on Simt Multi 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 Multi with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Simt Multi-asset.
Diversification Opportunities for Simt Multi and Simt Multi-asset
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Simt and Simt is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Capital and Simt Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Simt Multi 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 Capital 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 Multi i.e., Simt Multi and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Simt Multi and Simt Multi-asset
Assuming the 90 days horizon Simt Multi is expected to generate 1.83 times less return on investment than Simt Multi-asset. But when comparing it to its historical volatility, Simt Multi Asset Capital is 1.22 times less risky than Simt Multi-asset. It trades about 0.33 of its potential returns per unit of risk. Simt Multi Asset Income is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 971.00 in Simt Multi Asset Income on April 14, 2025 and sell it today you would earn a total of 48.00 from holding Simt Multi Asset Income or generate 4.94% 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 Capital vs. Simt Multi Asset Income
Performance |
| Timeline |
| Simt Multi Asset |
| Simt Multi Asset |
Simt Multi and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi and Simt Multi-asset
The main advantage of trading using opposite Simt Multi and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi 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 Multi vs. Rbc Emerging Markets | Simt Multi vs. Ep Emerging Markets | Simt Multi vs. Virtus Emerging Markets | Simt Multi vs. Investec Emerging Markets |
| Simt Multi-asset vs. Simt E Fixed | Simt Multi-asset vs. Sit Emerging Markets | Simt Multi-asset vs. Simt Global Managed | Simt Multi-asset vs. Sit International Equity |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |