Correlation Between Catholic Values and Simt Tax

Can any of the company-specific risk be diversified away by investing in both Catholic Values and Simt Tax 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 Tax 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 Tax Managed Smallmid, you can compare the effects of market volatilities on Catholic Values and Simt Tax 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 Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catholic Values and Simt Tax.

Diversification Opportunities for Catholic Values and Simt Tax

-0.33

Correlation Coefficient

Catholic Values  Simt Tax

Very good diversification

The 3 months correlation between Catholic and Simt is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Catholic Values Fixed and Simt Tax Managed Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Tax Managed 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 Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Tax Managed has no effect on the direction of Catholic Values i.e., Catholic Values and Simt Tax go up and down completely randomly.

Pair Corralation between Catholic Values and Simt Tax

Assuming the 90 days horizon Catholic Values Fixed is expected to under-perform the Simt Tax. But the mutual fund apears to be less risky and, when comparing its historical volatility, Catholic Values Fixed is 6.18 times less risky than Simt Tax. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Simt Tax Managed Smallmid is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,941  in Simt Tax Managed Smallmid on February 5, 2025 and sell it today you would earn a total of  206.00  from holding Simt Tax Managed Smallmid or generate 10.61% return on investment over 90 days.

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

Catholic Values Fixed  vs.  Simt Tax Managed Smallmid

Catholic Values Fixed

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Catholic Values Fixed are ranked lower than 1 (%) 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 Tax Managed

Risk-Adjusted Performance

Very Weak

Over the last 90 days Simt Tax Managed Smallmid has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Catholic Values and Simt Tax

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

The idea behind Catholic Values Fixed and Simt Tax Managed Smallmid 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.

Check out your portfolio center.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.