Correlation Between Catholic Values and Simt Multi

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

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

Diversification Opportunities for Catholic Values and Simt Multi

0.85

Correlation Coefficient

Catholic Values  Simt Multi

Very poor diversification

The 3 months correlation between Catholic and Simt is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Catholic Values Fixed and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Catholic Values 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 Catholic Values Fixed 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 Catholic Values i.e., Catholic Values and Simt Multi go up and down completely randomly.

Pair Corralation between Catholic Values and Simt Multi

Assuming the 90 days horizon Catholic Values Fixed is expected to under-perform the Simt Multi. But the mutual fund apears to be less risky and, when comparing its historical volatility, Catholic Values Fixed is 1.63 times less risky than Simt Multi. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Simt Multi Asset Accumulation is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  722.00  in Simt Multi Asset Accumulation on October 26, 2024 and sell it today you would earn a total of  6.00  from holding Simt Multi Asset Accumulation or generate 0.83% return on investment over 90 days.

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

Catholic Values Fixed  vs.  Simt Multi Asset Accumulation

Catholic Values Fixed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Catholic Values Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Catholic Values is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt Multi Asset

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Accumulation are ranked lower than 2 (%) 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 Catholic Values and Simt Multi

The main advantage of trading using opposite Catholic Values and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catholic Values 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 Catholic Values Fixed and Simt Multi Asset Accumulation 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.