Correlation Between Catholic Values and Simt E

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

By analyzing existing cross correlation between Catholic Values Fixed and Simt E Fixed, you can compare the effects of market volatilities on Catholic Values and Simt E 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 Catholic Values with a short position of Simt E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catholic Values and Simt E.

Diversification Opportunities for Catholic Values and Simt E

0.97

Correlation Coefficient

Catholic Values  Simt E

Almost no diversification

The 3 months correlation between Catholic and Simt is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Catholic Values Fixed and Simt E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt E Fixed and Catholic Values 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 Catholic Values Fixed are associated (or correlated) with Simt E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt E Fixed has no effect on the direction of Catholic Values i.e., Catholic Values and Simt E go up and down completely randomly.

Pair Corralation between Catholic Values and Simt E

Assuming the 90 days horizon Catholic Values Fixed is expected to generate 1.05 times more return on investment than Simt E. However, Catholic Values is 1.05 times more volatile than Simt E Fixed. It trades about 0.17 of its potential returns per unit of risk. Simt E Fixed is currently generating about 0.18 per unit of risk. If you would invest  855.00  in Catholic Values Fixed on July 4, 2025 and sell it today you would earn a total of  24.00  from holding Catholic Values Fixed or generate 2.81% return on investment over 90 days.

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

Catholic Values Fixed  vs.  Simt E Fixed

Catholic Values Fixed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Catholic Values Fixed are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Catholic Values is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt E Fixed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Simt E Fixed are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt E is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Catholic Values and Simt E

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

The idea behind Catholic Values Fixed and Simt E Fixed 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.