Correlation Between Simt Multi-asset and Siit Us
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Siit Us 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 Multi-asset and Siit Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Accumulation and Siit Equity Factor, you can compare the effects of market volatilities on Simt Multi-asset and Siit Us 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 Multi-asset with a short position of Siit Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Siit Us.
Diversification Opportunities for Simt Multi-asset and Siit Us
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Siit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Siit Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Equity Factor and Simt Multi-asset 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 Multi Asset Accumulation are associated (or correlated) with Siit Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Equity Factor has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Siit Us go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Siit Us
Assuming the 90 days horizon Simt Multi-asset is expected to generate 3.48 times less return on investment than Siit Us. But when comparing it to its historical volatility, Simt Multi Asset Accumulation is 1.44 times less risky than Siit Us. It trades about 0.05 of its potential returns per unit of risk. Siit Equity Factor is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,151 in Siit Equity Factor on February 6, 2024 and sell it today you would earn a total of 198.00 from holding Siit Equity Factor or generate 17.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Simt Multi Asset Accumulation vs. Siit Equity Factor
Performance |
Timeline |
Simt Multi Asset |
Siit Equity Factor |
Simt Multi-asset and Siit Us Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simt Multi-asset and Siit Us
The main advantage of trading using opposite Simt Multi-asset and Siit Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Siit Us 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 Siit Us will offset losses from the drop in Siit Us' long position.Simt Multi-asset vs. Saat Market Growth | Simt Multi-asset vs. Simt Real Return | Simt Multi-asset vs. Simt Small Cap | Simt Multi-asset vs. Siit Screened World |
Siit Us vs. Simt Multi Asset Accumulation | Siit Us vs. Saat Market Growth | Siit Us vs. Simt Real Return | Siit Us vs. Simt Small Cap |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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