Correlation Between Nt Non and Simt Managed

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

By analyzing existing cross correlation between Nt Non US Intrinsic and Simt Managed Volatility, you can compare the effects of market volatilities on Nt Non and Simt Managed 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 Nt Non with a short position of Simt Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nt Non and Simt Managed.

Diversification Opportunities for Nt Non and Simt Managed

0.13

Correlation Coefficient

Nt Non  Simt Managed

Average diversification

The 3 months correlation between ANTUX and Simt is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nt Non US Intrinsic and Simt Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Managed Volatility and Nt Non 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 Nt Non US Intrinsic are associated (or correlated) with Simt Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Managed Volatility has no effect on the direction of Nt Non i.e., Nt Non and Simt Managed go up and down completely randomly.

Pair Corralation between Nt Non and Simt Managed

Assuming the 90 days horizon Nt Non US Intrinsic is expected to generate 1.29 times more return on investment than Simt Managed. However, Nt Non is 1.29 times more volatile than Simt Managed Volatility. It trades about 0.13 of its potential returns per unit of risk. Simt Managed Volatility is currently generating about 0.01 per unit of risk. If you would invest  1,039  in Nt Non US Intrinsic on September 4, 2025 and sell it today you would earn a total of  65.00  from holding Nt Non US Intrinsic or generate 6.26% return on investment over 90 days.

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

Nt Non US Intrinsic  vs.  Simt Managed Volatility

Nt Non Intrinsic

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Nt Non US Intrinsic are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Nt Non is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt Managed Volatility

Risk-Adjusted Performance

Weakest

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

Pair Trading with Nt Non and Simt Managed

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

The idea behind Nt Non US Intrinsic and Simt Managed Volatility 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.