Correlation Between Siit Small and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Siit Small 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 Siit Small and Simt Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Small Cap and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Siit Small 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 Siit Small with a short position of Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Simt Multi.
Diversification Opportunities for Siit Small and Simt Multi
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Simt is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Cap 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 Siit Small 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 Siit Small Cap 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 Siit Small i.e., Siit Small and Simt Multi go up and down completely randomly.
Pair Corralation between Siit Small and Simt Multi
Assuming the 90 days horizon Siit Small Cap is expected to generate 2.44 times more return on investment than Simt Multi. However, Siit Small is 2.44 times more volatile than Simt Multi Asset Accumulation. It trades about 0.11 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about -0.04 per unit of risk. If you would invest 1,177 in Siit Small Cap on September 14, 2024 and sell it today you would earn a total of 94.00 from holding Siit Small Cap or generate 7.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Siit Small Cap vs. Simt Multi Asset Accumulation
Performance |
Timeline |
Siit Small Cap |
Simt Multi Asset |
Siit Small and Simt Multi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siit Small and Simt Multi
The main advantage of trading using opposite Siit Small and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small 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.Siit Small vs. Simt Multi Asset Accumulation | Siit Small vs. Saat Market Growth | Siit Small vs. Simt Real Return | Siit Small vs. Simt Small Cap |
Simt Multi vs. Fidelity Advisor Energy | Simt Multi vs. Thrivent Natural Resources | Simt Multi vs. Clearbridge Energy Mlp | Simt Multi vs. Gamco Natural Resources |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |