Correlation Between Simt Multi-asset and Apexcm Small/mid

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

By analyzing existing cross correlation between Simt Multi Asset Inflation and Apexcm Smallmid Cap, you can compare the effects of market volatilities on Simt Multi-asset and Apexcm Small/mid 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 Apexcm Small/mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Apexcm Small/mid.

Diversification Opportunities for Simt Multi-asset and Apexcm Small/mid

0.16

Correlation Coefficient

Simt Multi-asset  Apexcm Small/mid

Average diversification

The 3 months correlation between Simt and Apexcm is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Apexcm Smallmid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apexcm Smallmid Cap 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 Inflation are associated (or correlated) with Apexcm Small/mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apexcm Smallmid Cap has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Apexcm Small/mid go up and down completely randomly.

Pair Corralation between Simt Multi-asset and Apexcm Small/mid

Assuming the 90 days horizon Simt Multi Asset Inflation is expected to under-perform the Apexcm Small/mid. But the mutual fund apears to be less risky and, when comparing its historical volatility, Simt Multi Asset Inflation is 2.22 times less risky than Apexcm Small/mid. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Apexcm Smallmid Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,703  in Apexcm Smallmid Cap on October 6, 2024 and sell it today you would earn a total of  32.00  from holding Apexcm Smallmid Cap or generate 1.88% return on investment over 90 days.

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

Simt Multi Asset Inflation  vs.  Apexcm Smallmid Cap

Simt Multi Asset

Risk-Adjusted Performance

0 of 100

Very Weak

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

Apexcm Smallmid Cap

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apexcm Smallmid Cap are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Apexcm Small/mid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Simt Multi-asset and Apexcm Small/mid

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

The idea behind Simt Multi Asset Inflation and Apexcm Smallmid Cap 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .