Correlation Between Fidelity Sai and Simt Dynamic

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Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Simt Dynamic 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 Fidelity Sai and Simt Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sai Inflationfocused and Simt Dynamic Asset, you can compare the effects of market volatilities on Fidelity Sai and Simt Dynamic 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 Fidelity Sai with a short position of Simt Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Simt Dynamic.

Diversification Opportunities for Fidelity Sai and Simt Dynamic

0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Fidelity and Simt is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Inflationfocused and Simt Dynamic Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Dynamic Asset and Fidelity Sai 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 Fidelity Sai Inflationfocused are associated (or correlated) with Simt Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Dynamic Asset has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Simt Dynamic go up and down completely randomly.

Pair Corralation between Fidelity Sai and Simt Dynamic

Assuming the 90 days horizon Fidelity Sai is expected to generate 1.34 times less return on investment than Simt Dynamic. In addition to that, Fidelity Sai is 1.71 times more volatile than Simt Dynamic Asset. It trades about 0.13 of its total potential returns per unit of risk. Simt Dynamic Asset is currently generating about 0.29 per unit of volatility. If you would invest  1,633  in Simt Dynamic Asset on May 2, 2025 and sell it today you would earn a total of  205.00  from holding Simt Dynamic Asset or generate 12.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Fidelity Sai Inflationfocused  vs.  Simt Dynamic Asset

 Performance 
       Timeline  
Fidelity Sai Inflati 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Sai Inflationfocused are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Fidelity Sai may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Simt Dynamic Asset 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Simt Dynamic Asset are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Simt Dynamic may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Fidelity Sai and Simt Dynamic Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity Sai and Simt Dynamic

The main advantage of trading using opposite Fidelity Sai and Simt Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Simt Dynamic 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 Dynamic will offset losses from the drop in Simt Dynamic's long position.
The idea behind Fidelity Sai Inflationfocused and Simt Dynamic Asset 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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