Correlation Between Simt Large and Sit International
Can any of the company-specific risk be diversified away by investing in both Simt Large and Sit International 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 Large and Sit International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Large Cap and Sit International Equity, you can compare the effects of market volatilities on Simt Large and Sit International 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 Large with a short position of Sit International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Large and Sit International.
Diversification Opportunities for Simt Large and Sit International
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Sit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Simt Large Cap and Sit International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit International Equity and Simt Large 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 Large Cap are associated (or correlated) with Sit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit International Equity has no effect on the direction of Simt Large i.e., Simt Large and Sit International go up and down completely randomly.
Pair Corralation between Simt Large and Sit International
Assuming the 90 days horizon Simt Large Cap is expected to generate 0.95 times more return on investment than Sit International. However, Simt Large Cap is 1.05 times less risky than Sit International. It trades about 0.21 of its potential returns per unit of risk. Sit International Equity is currently generating about 0.16 per unit of risk. If you would invest 2,603 in Simt Large Cap on May 26, 2025 and sell it today you would earn a total of 238.00 from holding Simt Large Cap or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Large Cap vs. Sit International Equity
Performance |
| Timeline |
| Simt Large Cap |
| Sit International Equity |
Simt Large and Sit International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Large and Sit International
The main advantage of trading using opposite Simt Large and Sit International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Large position performs unexpectedly, Sit International 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 Sit International will offset losses from the drop in Sit International's long position.| Simt Large vs. Old Westbury Small | Simt Large vs. Artisan Small Cap | Simt Large vs. Aqr Small Cap | Simt Large vs. Siit Small Cap |
| Sit International vs. Putnam Global Technology | Sit International vs. Allianzgi Technology Fund | Sit International vs. Technology Ultrasector Profund | Sit International vs. Pgim Jennison Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |