Correlation Between Simt Real and Global Hard
Can any of the company-specific risk be diversified away by investing in both Simt Real and Global Hard 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 Real and Global Hard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Real Estate and Global Hard Assets, you can compare the effects of market volatilities on Simt Real and Global Hard 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 Real with a short position of Global Hard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Real and Global Hard.
Diversification Opportunities for Simt Real and Global Hard
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Simt and Global is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Simt Real Estate and Global Hard Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Hard Assets and Simt Real 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 Real Estate are associated (or correlated) with Global Hard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Hard Assets has no effect on the direction of Simt Real i.e., Simt Real and Global Hard go up and down completely randomly.
Pair Corralation between Simt Real and Global Hard
Assuming the 90 days horizon Simt Real is expected to generate 3.04 times less return on investment than Global Hard. But when comparing it to its historical volatility, Simt Real Estate is 1.02 times less risky than Global Hard. It trades about 0.07 of its potential returns per unit of risk. Global Hard Assets is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 3,935 in Global Hard Assets on May 26, 2025 and sell it today you would earn a total of 423.00 from holding Global Hard Assets or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Real Estate vs. Global Hard Assets
Performance |
| Timeline |
| Simt Real Estate |
| Global Hard Assets |
Simt Real and Global Hard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Real and Global Hard
The main advantage of trading using opposite Simt Real and Global Hard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Real position performs unexpectedly, Global Hard 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 Global Hard will offset losses from the drop in Global Hard's long position.| Simt Real vs. Wells Fargo Government | Simt Real vs. Intermediate Government Bond | Simt Real vs. Payden Government Fund | Simt Real vs. Sit Government Securities |
| Global Hard vs. Prudential Emerging Markets | Global Hard vs. Fidelity New Markets | Global Hard vs. Blackrock Emerging Markets | Global Hard vs. Alphacentric Hedged Market |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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