Correlation Between Delaware Healthcare and Simt Small

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

By analyzing existing cross correlation between Delaware Healthcare Fund and Simt Small Cap, you can compare the effects of market volatilities on Delaware Healthcare and Simt Small 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 Delaware Healthcare with a short position of Simt Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Healthcare and Simt Small.

Diversification Opportunities for Delaware Healthcare and Simt Small

0.91

Correlation Coefficient

Delaware Healthcare  Simt Small

Almost no diversification

The 3 months correlation between Delaware and Simt is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Healthcare Fund and Simt Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Small Cap and Delaware Healthcare 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 Delaware Healthcare Fund are associated (or correlated) with Simt Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Small Cap has no effect on the direction of Delaware Healthcare i.e., Delaware Healthcare and Simt Small go up and down completely randomly.

Pair Corralation between Delaware Healthcare and Simt Small

Assuming the 90 days horizon Delaware Healthcare Fund is expected to generate 1.0 times more return on investment than Simt Small. However, Delaware Healthcare Fund is 1.0 times less risky than Simt Small. It trades about 0.2 of its potential returns per unit of risk. Simt Small Cap is currently generating about 0.11 per unit of risk. If you would invest  2,243  in Delaware Healthcare Fund on July 5, 2025 and sell it today you would earn a total of  324.00  from holding Delaware Healthcare Fund or generate 14.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Delaware Healthcare Fund  vs.  Simt Small Cap

Delaware Healthcare

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Delaware Healthcare Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical indicators, Delaware Healthcare showed solid returns over the last few months and may actually be approaching a breakup point.

Simt Small Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Small Cap are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Simt Small may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Delaware Healthcare and Simt Small

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

The idea behind Delaware Healthcare Fund and Simt Small Cap 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.