Correlation Between Simt Sp and Simt High
Can any of the company-specific risk be diversified away by investing in both Simt Sp and Simt 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 Sp and Simt High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Sp 500 and Simt High Yield, you can compare the effects of market volatilities on Simt Sp and Simt 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 Sp with a short position of Simt High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Sp and Simt High.
Diversification Opportunities for Simt Sp and Simt High
Almost no diversification
The 3 months correlation between Simt and Simt is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Simt Sp 500 and Simt High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt High Yield and Simt Sp 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 Sp 500 are associated (or correlated) with Simt High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt High Yield has no effect on the direction of Simt Sp i.e., Simt Sp and Simt High go up and down completely randomly.
Pair Corralation between Simt Sp and Simt High
Assuming the 90 days horizon Simt Sp 500 is expected to generate 3.06 times more return on investment than Simt High. However, Simt Sp is 3.06 times more volatile than Simt High Yield. It trades about 0.23 of its potential returns per unit of risk. Simt High Yield is currently generating about 0.24 per unit of risk. If you would invest 9,507 in Simt Sp 500 on June 1, 2025 and sell it today you would earn a total of 866.00 from holding Simt Sp 500 or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Simt Sp 500 vs. Simt High Yield
Performance |
| Timeline |
| Simt Sp 500 |
| Simt High Yield |
Simt Sp and Simt High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Sp and Simt High
The main advantage of trading using opposite Simt Sp and Simt High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Sp position performs unexpectedly, Simt 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 Simt High will offset losses from the drop in Simt High's long position.| Simt Sp vs. Simt Small Cap | Simt Sp vs. Simt Small Cap | Simt Sp vs. Simt Large Cap | Simt Sp vs. Sit International Equity |
| Simt High vs. Vanguard Small Cap Value | Simt High vs. Northern Small Cap | Simt High vs. American Century Etf | Simt High vs. Small Cap Value Fund |
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.
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