Correlation Between Health Care and Simt Multi

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

By analyzing existing cross correlation between Health Care Ultrasector and Simt Multi Asset Capital, you can compare the effects of market volatilities on Health Care and Simt Multi 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 Health Care with a short position of Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Health Care and Simt Multi.

Diversification Opportunities for Health Care and Simt Multi

-0.08

Correlation Coefficient

Health Care  Simt Multi

Good diversification

The 3 months correlation between Health and Simt is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Health Care Ultrasector and Simt Multi Asset Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Health Care 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 Health Care Ultrasector are associated (or correlated) with Simt Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Health Care i.e., Health Care and Simt Multi go up and down completely randomly.

Pair Corralation between Health Care and Simt Multi

Assuming the 90 days horizon Health Care Ultrasector is expected to generate 11.89 times more return on investment than Simt Multi. However, Health Care is 11.89 times more volatile than Simt Multi Asset Capital. It trades about 0.07 of its potential returns per unit of risk. Simt Multi Asset Capital is currently generating about 0.33 per unit of risk. If you would invest  9,007  in Health Care Ultrasector on May 21, 2025 and sell it today you would earn a total of  479.00  from holding Health Care Ultrasector or generate 5.32% return on investment over 90 days.

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

Health Care Ultrasector  vs.  Simt Multi Asset Capital

Health Care Ultrasector

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Health Care Ultrasector are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Health Care is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Simt Multi Asset

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Capital are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Multi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Health Care and Simt Multi

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

The idea behind Health Care Ultrasector and Simt Multi Asset Capital 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.