Correlation Between High-yield Fund and Simt Real

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

By analyzing existing cross correlation between High Yield Fund R5 and Simt Real Estate, you can compare the effects of market volatilities on High-yield Fund and Simt Real 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 High-yield Fund with a short position of Simt Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of High-yield Fund and Simt Real.

Diversification Opportunities for High-yield Fund and Simt Real

0.0

Correlation Coefficient

High-yield Fund  Simt Real

Pay attention - limited upside

The 3 months correlation between High-yield and Simt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Fund R5 and Simt Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Real Estate and High-yield Fund 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 High Yield Fund R5 are associated (or correlated) with Simt Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Real Estate has no effect on the direction of High-yield Fund i.e., High-yield Fund and Simt Real go up and down completely randomly.

Pair Corralation between High-yield Fund and Simt Real

If you would invest  0.00  in High Yield Fund R5 on May 12, 2025 and sell it today you would earn a total of  0.00  from holding High Yield Fund R5 or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

High Yield Fund R5  vs.  Simt Real Estate

High Yield Fund

Risk-Adjusted Performance

Good

Over the last 90 days High Yield Fund R5 has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, High-yield Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt Real Estate

Risk-Adjusted Performance

Weakest

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

Pair Trading with High-yield Fund and Simt Real

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

The idea behind High Yield Fund R5 and Simt Real Estate 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..