Correlation Between Siit Small and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Siit Small 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 Siit Small and Simt Multi 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 Multi Asset Income, you can compare the effects of market volatilities on Siit Small 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 Siit Small with a short position of Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Simt Multi.
Diversification Opportunities for Siit Small and Simt Multi
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Simt is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Simt Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 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 Siit Small i.e., Siit Small and Simt Multi go up and down completely randomly.
Pair Corralation between Siit Small and Simt Multi
Assuming the 90 days horizon Siit Small Mid is expected to generate 6.51 times more return on investment than Simt Multi. However, Siit Small is 6.51 times more volatile than Simt Multi Asset Income. It trades about 0.15 of its potential returns per unit of risk. Simt Multi Asset Income is currently generating about 0.39 per unit of risk. If you would invest 962.00 in Siit Small Mid on May 30, 2025 and sell it today you would earn a total of 85.00 from holding Siit Small Mid or generate 8.84% 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 Multi Asset Income
Performance |
| Timeline |
| Siit Small Mid |
| Simt Multi Asset |
Siit Small and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Simt Multi
The main advantage of trading using opposite Siit Small and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small 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.| Siit Small vs. Gamco Global Telecommunications | Siit Small vs. Europac International Bond | Siit Small vs. Ab Bond Inflation | Siit Small vs. Multisector Bond Sma |
| Simt Multi vs. Simt E Fixed | Simt Multi vs. Sit Emerging Markets | Simt Multi vs. Simt Global Managed | Simt Multi vs. Sit International Equity |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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