Correlation Between Simt High and Horizon Active
Can any of the company-specific risk be diversified away by investing in both Simt High and Horizon Active 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 High and Horizon Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt High Yield and Horizon Active Asset, you can compare the effects of market volatilities on Simt High and Horizon Active 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 High with a short position of Horizon Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt High and Horizon Active.
Diversification Opportunities for Simt High and Horizon Active
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Horizon is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Simt High Yield and Horizon Active Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Active Asset and Simt High 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 High Yield are associated (or correlated) with Horizon Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Active Asset has no effect on the direction of Simt High i.e., Simt High and Horizon Active go up and down completely randomly.
Pair Corralation between Simt High and Horizon Active
Assuming the 90 days horizon Simt High is expected to generate 2.27 times less return on investment than Horizon Active. But when comparing it to its historical volatility, Simt High Yield is 2.99 times less risky than Horizon Active. It trades about 0.28 of its potential returns per unit of risk. Horizon Active Asset is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,342 in Horizon Active Asset on May 29, 2025 and sell it today you would earn a total of 113.00 from holding Horizon Active Asset or generate 8.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Simt High Yield vs. Horizon Active Asset
Performance |
| Timeline |
| Simt High Yield |
| Horizon Active Asset |
Simt High and Horizon Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt High and Horizon Active
The main advantage of trading using opposite Simt High and Horizon Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt High position performs unexpectedly, Horizon Active 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 Horizon Active will offset losses from the drop in Horizon Active's long position.| Simt High vs. Qs Large Cap | Simt High vs. Dunham Large Cap | Simt High vs. Dana Large Cap | Simt High vs. Dreyfus Large Cap |
| Horizon Active vs. Fkhemx | Horizon Active vs. T Rowe Price | Horizon Active vs. Ab Select Equity | Horizon Active vs. Ab Value Fund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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