Correlation Between Siit Emerging and Simt Real
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Simt Real 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 Siit Emerging and Simt Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Simt Real Return, you can compare the effects of market volatilities on Siit Emerging and Simt Real 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 Siit Emerging with a short position of Simt Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Simt Real.
Diversification Opportunities for Siit Emerging and Simt Real
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Simt is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Simt Real Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Real Return and Siit Emerging 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 Siit Emerging Markets are associated (or correlated) with Simt Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Real Return has no effect on the direction of Siit Emerging i.e., Siit Emerging and Simt Real go up and down completely randomly.
Pair Corralation between Siit Emerging and Simt Real
Assuming the 90 days horizon Siit Emerging Markets is expected to generate 1.83 times more return on investment than Simt Real. However, Siit Emerging is 1.83 times more volatile than Simt Real Return. It trades about 0.39 of its potential returns per unit of risk. Simt Real Return is currently generating about 0.28 per unit of risk. If you would invest 863.00 in Siit Emerging Markets on May 30, 2025 and sell it today you would earn a total of 53.00 from holding Siit Emerging Markets or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Simt Real Return
Performance |
| Timeline |
| Siit Emerging Markets |
| Simt Real Return |
Siit Emerging and Simt Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Simt Real
The main advantage of trading using opposite Siit Emerging and Simt Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Simt Real 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 Real will offset losses from the drop in Simt Real's long position.| Siit Emerging vs. Franklin Emerging Market | Siit Emerging vs. T Rowe Price | Siit Emerging vs. Growth Strategy Fund | Siit Emerging vs. Western Assets Emerging |
| Simt Real vs. Aqr Diversified Arbitrage | Simt Real vs. Elfun Diversified Fund | Simt Real vs. Guidepath Conservative Income | Simt Real vs. Mainstay Conservative Allocation |
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.
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