Correlation Between Simt Real and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Simt Real and Simt Multi 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 Simt Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Real Return and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Simt Real and Simt Multi 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 Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Real and Simt Multi.
Diversification Opportunities for Simt Real and Simt Multi
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and Simt is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Simt Real Return and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Return are associated (or correlated) with Simt Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Simt Real i.e., Simt Real and Simt Multi go up and down completely randomly.
Pair Corralation between Simt Real and Simt Multi
Assuming the 90 days horizon Simt Real is expected to generate 4.08 times less return on investment than Simt Multi. But when comparing it to its historical volatility, Simt Real Return is 2.57 times less risky than Simt Multi. It trades about 0.16 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 698.00 in Simt Multi Asset Accumulation on April 22, 2025 and sell it today you would earn a total of 42.00 from holding Simt Multi Asset Accumulation or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Real Return vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Simt Real Return |
| Simt Multi Asset |
Simt Real and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Real and Simt Multi
The main advantage of trading using opposite Simt Real and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Real position performs unexpectedly, Simt Multi 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 Multi will offset losses from the drop in Simt Multi's long position.| Simt Real vs. Fidelity Advisor Diversified | Simt Real vs. Balanced Fund Retail | Simt Real vs. Lord Abbett Diversified | Simt Real vs. Catalyst Exceed Defined |
| Simt Multi vs. Boston Partners Longshort | Simt Multi vs. Astor Longshort Fund | Simt Multi vs. Lord Abbett Short | Simt Multi vs. Western Asset Short |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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