Correlation Between Simt Multi and Strategic Income

Can any of the company-specific risk be diversified away by investing in both Simt Multi and Strategic Income 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 and Strategic Income 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 Strategic Income Portfolio, you can compare the effects of market volatilities on Simt Multi and Strategic Income 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 with a short position of Strategic Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Strategic Income.

Diversification Opportunities for Simt Multi and Strategic Income

0.0

Correlation Coefficient

Simt Multi  Strategic Income

Pay attention - limited upside

The 3 months correlation between Simt and Strategic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Strategic Income Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Income Por and Simt Multi 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 Strategic Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Income Por has no effect on the direction of Simt Multi i.e., Simt Multi and Strategic Income go up and down completely randomly.

Pair Corralation between Simt Multi and Strategic Income

If you would invest  737.00  in Simt Multi Asset Inflation on October 21, 2024 and sell it today you would earn a total of  45.00  from holding Simt Multi Asset Inflation or generate 6.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Simt Multi Asset Inflation  vs.  Strategic Income Portfolio

Simt Multi Asset

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Inflation are ranked lower than 5 (%) 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.

Strategic Income Por

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Strategic Income Portfolio has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Strategic Income 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 and Strategic Income

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

The idea behind Simt Multi Asset Inflation and Strategic Income Portfolio 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.