Correlation Between Simplify Managed and IMGP DBi
Can any of the company-specific risk be diversified away by investing in both Simplify Managed and IMGP DBi 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 Simplify Managed and IMGP DBi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simplify Managed Futures and iMGP DBi Managed, you can compare the effects of market volatilities on Simplify Managed and IMGP DBi 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 Simplify Managed with a short position of IMGP DBi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simplify Managed and IMGP DBi.
Diversification Opportunities for Simplify Managed and IMGP DBi
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Simplify and IMGP is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Simplify Managed Futures and iMGP DBi Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iMGP DBi Managed and Simplify Managed 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 Simplify Managed Futures are associated (or correlated) with IMGP DBi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iMGP DBi Managed has no effect on the direction of Simplify Managed i.e., Simplify Managed and IMGP DBi go up and down completely randomly.
Pair Corralation between Simplify Managed and IMGP DBi
Considering the 90-day investment horizon Simplify Managed Futures is expected to under-perform the IMGP DBi. In addition to that, Simplify Managed is 2.95 times more volatile than iMGP DBi Managed. It trades about -0.01 of its total potential returns per unit of risk. iMGP DBi Managed is currently generating about 0.19 per unit of volatility. If you would invest 2,496 in iMGP DBi Managed on May 14, 2025 and sell it today you would earn a total of 93.00 from holding iMGP DBi Managed or generate 3.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Simplify Managed Futures vs. iMGP DBi Managed
Performance |
Timeline |
Simplify Managed Futures |
iMGP DBi Managed |
Simplify Managed and IMGP DBi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simplify Managed and IMGP DBi
The main advantage of trading using opposite Simplify Managed and IMGP DBi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simplify Managed position performs unexpectedly, IMGP DBi 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 IMGP DBi will offset losses from the drop in IMGP DBi's long position.Simplify Managed vs. AGFiQ Market Neutral | Simplify Managed vs. iMGP DBi Managed | Simplify Managed vs. KFA Mount Lucas | Simplify Managed vs. Simplify Interest Rate |
IMGP DBi vs. Simplify Managed Futures | IMGP DBi vs. First Trust Managed | IMGP DBi vs. KFA Mount Lucas | IMGP DBi vs. Simplify Interest Rate |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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