Correlation Between Simt Dynamic and Simt Global
Can any of the company-specific risk be diversified away by investing in both Simt Dynamic and Simt Global 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 Dynamic and Simt Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Dynamic Asset and Simt Global Managed, you can compare the effects of market volatilities on Simt Dynamic and Simt Global 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 Dynamic with a short position of Simt Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Dynamic and Simt Global.
Diversification Opportunities for Simt Dynamic and Simt Global
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Simt is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Simt Dynamic Asset and Simt Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Global Managed and Simt Dynamic 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 Dynamic Asset are associated (or correlated) with Simt Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Global Managed has no effect on the direction of Simt Dynamic i.e., Simt Dynamic and Simt Global go up and down completely randomly.
Pair Corralation between Simt Dynamic and Simt Global
Assuming the 90 days horizon Simt Dynamic Asset is expected to generate 1.39 times more return on investment than Simt Global. However, Simt Dynamic is 1.39 times more volatile than Simt Global Managed. It trades about 0.42 of its potential returns per unit of risk. Simt Global Managed is currently generating about 0.21 per unit of risk. If you would invest 1,479 in Simt Dynamic Asset on April 20, 2025 and sell it today you would earn a total of 336.00 from holding Simt Dynamic Asset or generate 22.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Simt Dynamic Asset vs. Simt Global Managed
Performance |
| Timeline |
| Simt Dynamic Asset |
| Simt Global Managed |
Simt Dynamic and Simt Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Dynamic and Simt Global
The main advantage of trading using opposite Simt Dynamic and Simt Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Dynamic position performs unexpectedly, Simt Global 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 Global will offset losses from the drop in Simt Global's long position.| Simt Dynamic vs. Black Oak Emerging | Simt Dynamic vs. Ep Emerging Markets | Simt Dynamic vs. Auer Growth Fund | Simt Dynamic vs. Pnc Emerging Markets |
| Simt Global vs. Simt Multi Asset Income | Simt Global vs. Sit Emerging Markets | Simt Global vs. Simt E Fixed | Simt Global 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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