Correlation Between Simt Small and Siit High
Can any of the company-specific risk be diversified away by investing in both Simt Small and Siit High 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 Small and Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Small Cap and Siit High Yield, you can compare the effects of market volatilities on Simt Small and Siit High 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 Small with a short position of Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Small and Siit High.
Diversification Opportunities for Simt Small and Siit High
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simt and Siit is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Simt Small Cap and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Simt Small 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 Small Cap are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Simt Small i.e., Simt Small and Siit High go up and down completely randomly.
Pair Corralation between Simt Small and Siit High
Assuming the 90 days horizon Simt Small Cap is expected to generate 5.11 times more return on investment than Siit High. However, Simt Small is 5.11 times more volatile than Siit High Yield. It trades about 0.16 of its potential returns per unit of risk. Siit High Yield is currently generating about 0.32 per unit of risk. If you would invest 3,323 in Simt Small Cap on May 29, 2025 and sell it today you would earn a total of 334.00 from holding Simt Small Cap or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Small Cap vs. Siit High Yield
Performance |
| Timeline |
| Simt Small Cap |
| Siit High Yield |
Simt Small and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Small and Siit High
The main advantage of trading using opposite Simt Small and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Small position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Simt Small vs. Vanguard Information Technology | Simt Small vs. Pgim Jennison Technology | Simt Small vs. Mfs Technology Fund |
| Siit High vs. Franklin Lifesmart Retirement | Siit High vs. Putnam Retirement Advantage | Siit High vs. Voya Target Retirement | Siit High vs. Blackrock Moderate Prepared |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |