Correlation Between Valic Company and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Valic Company and Simt Multi-asset 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 Valic Company and Simt Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Simt Multi Asset Capital, you can compare the effects of market volatilities on Valic Company and Simt Multi-asset 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 Valic Company with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Simt Multi-asset.
Diversification Opportunities for Valic Company and Simt Multi-asset
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valic and Simt is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Simt Multi Asset Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Valic Company 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 Valic Company I are associated (or correlated) with Simt Multi-asset. 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 Valic Company i.e., Valic Company and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Valic Company and Simt Multi-asset
Assuming the 90 days horizon Valic Company I is expected to generate 9.12 times more return on investment than Simt Multi-asset. However, Valic Company is 9.12 times more volatile than Simt Multi Asset Capital. It trades about 0.19 of its potential returns per unit of risk. Simt Multi Asset Capital is currently generating about 0.29 per unit of risk. If you would invest 1,092 in Valic Company I on June 1, 2025 and sell it today you would earn a total of 159.00 from holding Valic Company I or generate 14.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Valic Company I vs. Simt Multi Asset Capital
Performance |
| Timeline |
| Valic Company I |
| Simt Multi Asset |
Valic Company and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Simt Multi-asset
The main advantage of trading using opposite Valic Company and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Simt Multi-asset 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-asset will offset losses from the drop in Simt Multi-asset's long position.| Valic Company vs. Blackrock Health Sciences | Valic Company vs. Prudential Health Sciences | Valic Company vs. Schwab Health Care | Valic Company vs. Delaware Healthcare Fund |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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