Correlation Between Siit Small and Simt Global
Can any of the company-specific risk be diversified away by investing in both Siit Small and Simt Global 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 Siit Small and Simt Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Small Mid and Simt Global Managed, you can compare the effects of market volatilities on Siit Small and Simt Global 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 Siit Small with a short position of Simt Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Simt Global.
Diversification Opportunities for Siit Small and Simt Global
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Simt is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Simt Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Global Managed and Siit 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 Siit Small Mid are associated (or correlated) with Simt Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Global Managed has no effect on the direction of Siit Small i.e., Siit Small and Simt Global go up and down completely randomly.
Pair Corralation between Siit Small and Simt Global
Assuming the 90 days horizon Siit Small Mid is expected to generate 1.83 times more return on investment than Simt Global. However, Siit Small is 1.83 times more volatile than Simt Global Managed. It trades about 0.19 of its potential returns per unit of risk. Simt Global Managed is currently generating about 0.17 per unit of risk. If you would invest 890.00 in Siit Small Mid on April 22, 2025 and sell it today you would earn a total of 107.00 from holding Siit Small Mid or generate 12.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.41% |
Values | Daily Returns |
Siit Small Mid vs. Simt Global Managed
Performance |
Timeline |
Siit Small Mid |
Simt Global Managed |
Siit Small and Simt Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siit Small and Simt Global
The main advantage of trading using opposite Siit Small and Simt Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Simt Global 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 Global will offset losses from the drop in Simt Global's long position.Siit Small vs. Americafirst Large Cap | Siit Small vs. M Large Cap | Siit Small vs. Siit Large Cap | Siit Small vs. Qs Large Cap |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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