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
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Simt and Small is -0.52. 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 generate 0.51 times more return on investment than Small Cap. However, Simt Tax Managed Large is 1.96 times less risky than Small Cap. It trades about 0.09 of its potential returns per unit of risk. Small Cap Value is currently generating about -0.07 per unit of risk. If you would invest 3,886 in Simt Tax Managed Large on August 19, 2025 and sell it today you would earn a total of 121.00 from holding Simt Tax Managed Large or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| 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 Total Stock | Simt Tax-managed vs. Blackrock Advantage Small |
| Small Cap vs. Mid Cap Value | Small Cap vs. Equity Growth Fund | Small Cap vs. Income Growth Fund | Small Cap vs. Diversified Bond 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets |