Correlation Between Simt Sp and Needham Aggressive
Can any of the company-specific risk be diversified away by investing in both Simt Sp and Needham Aggressive 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 Sp and Needham Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Sp 500 and Needham Aggressive Growth, you can compare the effects of market volatilities on Simt Sp and Needham Aggressive 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 Sp with a short position of Needham Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Sp and Needham Aggressive.
Diversification Opportunities for Simt Sp and Needham Aggressive
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and Needham is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Simt Sp 500 and Needham Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Needham Aggressive Growth and Simt Sp 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 Sp 500 are associated (or correlated) with Needham Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Needham Aggressive Growth has no effect on the direction of Simt Sp i.e., Simt Sp and Needham Aggressive go up and down completely randomly.
Pair Corralation between Simt Sp and Needham Aggressive
Assuming the 90 days horizon Simt Sp 500 is expected to generate 0.46 times more return on investment than Needham Aggressive. However, Simt Sp 500 is 2.19 times less risky than Needham Aggressive. It trades about 0.06 of its potential returns per unit of risk. Needham Aggressive Growth is currently generating about -0.05 per unit of risk. If you would invest 10,423 in Simt Sp 500 on August 25, 2025 and sell it today you would earn a total of 280.00 from holding Simt Sp 500 or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Sp 500 vs. Needham Aggressive Growth
Performance |
| Timeline |
| Simt Sp 500 |
| Needham Aggressive Growth |
Simt Sp and Needham Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Sp and Needham Aggressive
The main advantage of trading using opposite Simt Sp and Needham Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Sp position performs unexpectedly, Needham Aggressive 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 Needham Aggressive will offset losses from the drop in Needham Aggressive's long position.| Simt Sp vs. Simt Sp 500 | Simt Sp vs. Needham Aggressive Growth | Simt Sp vs. Ridgeworth Ceredex Mid Cap | Simt Sp vs. Muirfield Fund Retail |
| Needham Aggressive vs. Brown Advisory Flexible | Needham Aggressive vs. Simt Sp 500 | Needham Aggressive vs. Simt Sp 500 | Needham Aggressive vs. Muirfield Fund Retail |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |