Correlation Between Aristotle Funds and Simt Multi

Can any of the company-specific risk be diversified away by investing in both Aristotle Funds and Simt Multi 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 Aristotle Funds and Simt Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aristotle Funds Series and Simt Multi Asset Inflation, you can compare the effects of market volatilities on Aristotle Funds and Simt Multi 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 Aristotle Funds with a short position of Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristotle Funds and Simt Multi.

Diversification Opportunities for Aristotle Funds and Simt Multi

-0.62

Correlation Coefficient

Aristotle Funds  Simt Multi

Excellent diversification

The 3 months correlation between Aristotle and Simt is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aristotle Funds Series and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Aristotle Funds 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 Aristotle Funds Series are associated (or correlated) with Simt Multi. 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 Aristotle Funds i.e., Aristotle Funds and Simt Multi go up and down completely randomly.

Pair Corralation between Aristotle Funds and Simt Multi

Assuming the 90 days horizon Aristotle Funds Series is expected to under-perform the Simt Multi. In addition to that, Aristotle Funds is 4.59 times more volatile than Simt Multi Asset Inflation. It trades about -0.11 of its total potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.45 per unit of volatility. If you would invest  762.00  in Simt Multi Asset Inflation on December 22, 2024 and sell it today you would earn a total of  45.00  from holding Simt Multi Asset Inflation or generate 5.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Aristotle Funds Series  vs.  Simt Multi Asset Inflation

Aristotle Funds Series

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aristotle Funds Series has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Simt Multi Asset

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Inflation are ranked lower than 35 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Multi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aristotle Funds and Simt Multi

The main advantage of trading using opposite Aristotle Funds and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristotle Funds position performs unexpectedly, Simt Multi 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 will offset losses from the drop in Simt Multi's long position.

The idea behind Aristotle Funds Series and Simt Multi Asset Inflation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.