Correlation Between Simt Global and Simt Core
Can any of the company-specific risk be diversified away by investing in both Simt Global and Simt Core 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 Global and Simt Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Global Managed and Simt E Fixed, you can compare the effects of market volatilities on Simt Global and Simt Core 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 Global with a short position of Simt Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Global and Simt Core.
Diversification Opportunities for Simt Global and Simt Core
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Simt and Simt is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Simt Global Managed and Simt E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt E Fixed and Simt Global 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 Global Managed are associated (or correlated) with Simt Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt E Fixed has no effect on the direction of Simt Global i.e., Simt Global and Simt Core go up and down completely randomly.
Pair Corralation between Simt Global and Simt Core
Assuming the 90 days horizon Simt Global Managed is expected to generate 1.86 times more return on investment than Simt Core. However, Simt Global is 1.86 times more volatile than Simt E Fixed. It trades about 0.02 of its potential returns per unit of risk. Simt E Fixed is currently generating about 0.02 per unit of risk. If you would invest 1,106 in Simt Global Managed on April 14, 2025 and sell it today you would earn a total of 2.00 from holding Simt Global Managed or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Global Managed vs. Simt E Fixed
Performance |
| Timeline |
| Simt Global Managed |
| Simt E Fixed |
Simt Global and Simt Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Global and Simt Core
The main advantage of trading using opposite Simt Global and Simt Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Global position performs unexpectedly, Simt Core 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 Core will offset losses from the drop in Simt Core's long position.| 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 |
| Simt Core vs. Sit Emerging Markets | Simt Core vs. Simt Multi Asset Income | Simt Core vs. Sit International Equity | Simt Core vs. Simt Global Managed |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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