Correlation Between Simt Tax-managed and Small Cap
Can any of the company-specific risk be diversified away by investing in both Simt Tax-managed and Small Cap 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 Tax-managed and Small Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Tax Managed Large and Small Cap Value, you can compare the effects of market volatilities on Simt Tax-managed and Small Cap 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 Tax-managed with a short position of Small Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Tax-managed and Small Cap.
Diversification Opportunities for Simt Tax-managed and Small Cap
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simt and Small is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Simt Tax Managed Large and Small Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Value and Simt Tax-managed 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 Tax Managed Large are associated (or correlated) with Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Value has no effect on the direction of Simt Tax-managed i.e., Simt Tax-managed and Small Cap go up and down completely randomly.
Pair Corralation between Simt Tax-managed and Small Cap
Assuming the 90 days horizon Simt Tax Managed Large is expected to under-perform the Small Cap. But the mutual fund apears to be less risky and, when comparing its historical volatility, Simt Tax Managed Large is 1.9 times less risky than Small Cap. The mutual fund trades about -0.22 of its potential returns per unit of risk. The Small Cap Value is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 989.00 in Small Cap Value on August 26, 2025 and sell it today you would lose (31.00) from holding Small Cap Value or give up 3.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Tax Managed Large vs. Small Cap Value
Performance |
| Timeline |
| Simt Tax Managed |
| Small Cap Value |
Simt Tax-managed and Small Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Tax-managed and Small Cap
The main advantage of trading using opposite Simt Tax-managed and Small Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Tax-managed position performs unexpectedly, Small Cap 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 Small Cap will offset losses from the drop in Small Cap's long position.| Simt Tax-managed vs. Simt Tax Managed Large | Simt Tax-managed vs. Blackrock Advantage Small | Simt Tax-managed vs. Blackrock Advantage Small | Simt Tax-managed vs. Blackrock Advantage Small |
| Small Cap vs. Small Cap Growth | Small Cap vs. Small Cap Growth | Small Cap vs. Blackrock Advantage Small | Small Cap vs. Blackrock Advantage Small |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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