Correlation Between State Street and Simt Tax-managed
Can any of the company-specific risk be diversified away by investing in both State Street and Simt Tax-managed 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 State Street and Simt Tax-managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Target and Simt Tax Managed Smallmid, you can compare the effects of market volatilities on State Street and Simt Tax-managed 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 State Street with a short position of Simt Tax-managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Simt Tax-managed.
Diversification Opportunities for State Street and Simt Tax-managed
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between State and Simt is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding State Street Target and Simt Tax Managed Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Tax Managed and State Street 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 State Street Target are associated (or correlated) with Simt Tax-managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Tax Managed has no effect on the direction of State Street i.e., State Street and Simt Tax-managed go up and down completely randomly.
Pair Corralation between State Street and Simt Tax-managed
Assuming the 90 days horizon State Street is expected to generate 1.07 times less return on investment than Simt Tax-managed. But when comparing it to its historical volatility, State Street Target is 2.12 times less risky than Simt Tax-managed. It trades about 0.22 of its potential returns per unit of risk. Simt Tax Managed Smallmid is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,221 in Simt Tax Managed Smallmid on May 24, 2025 and sell it today you would earn a total of 138.00 from holding Simt Tax Managed Smallmid or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Street Target vs. Simt Tax Managed Smallmid
Performance |
| Timeline |
| State Street Target |
| Simt Tax Managed |
State Street and Simt Tax-managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Simt Tax-managed
The main advantage of trading using opposite State Street and Simt Tax-managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Simt Tax-managed 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 Tax-managed will offset losses from the drop in Simt Tax-managed's long position.| State Street vs. Aqr Diversified Arbitrage | State Street vs. Columbia Diversified Equity | State Street vs. Lord Abbett Diversified | State Street vs. Delaware Limited Term Diversified |
| Simt Tax-managed vs. Lord Abbett Diversified | Simt Tax-managed vs. Elfun Diversified Fund | Simt Tax-managed vs. Calvert Conservative Allocation | Simt Tax-managed vs. Tax Free Conservative |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |