Correlation Between Simt Multi-asset and Siit Emerging
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Siit Emerging 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 Emerging 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 Emerging Markets, you can compare the effects of market volatilities on Simt Multi-asset and Siit Emerging 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 Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Siit Emerging.
Diversification Opportunities for Simt Multi-asset and Siit Emerging
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and SIIT is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets 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 Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Siit Emerging go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Siit Emerging
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to generate 0.58 times more return on investment than Siit Emerging. However, Simt Multi Asset Accumulation is 1.72 times less risky than Siit Emerging. It trades about 0.06 of its potential returns per unit of risk. Siit Emerging Markets is currently generating about 0.0 per unit of risk. If you would invest 731.00 in Simt Multi Asset Accumulation on December 4, 2024 and sell it today you would earn a total of 4.00 from holding Simt Multi Asset Accumulation or generate 0.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Simt Multi Asset Accumulation vs. Siit Emerging Markets
Performance |
Timeline |
Simt Multi Asset |
Siit Emerging Markets |
Simt Multi-asset and Siit Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simt Multi-asset and Siit Emerging
The main advantage of trading using opposite Simt Multi-asset and Siit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Siit Emerging 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 Emerging will offset losses from the drop in Siit Emerging's long position.Simt Multi-asset vs. Clearbridge Energy Mlp | Simt Multi-asset vs. Alpsalerian Energy Infrastructure | Simt Multi-asset vs. Transamerica Mlp Energy | Simt Multi-asset vs. Short Oil Gas |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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