Correlation Between Highland Global and Simt Dynamic

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

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

Diversification Opportunities for Highland Global and Simt Dynamic

0.04

Correlation Coefficient

Highland Global  Simt Dynamic

Significant diversification

The 3 months correlation between Highland and Simt is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation 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 Highland Global 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 Highland Global Allocation 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 Highland Global i.e., Highland Global and Simt Dynamic go up and down completely randomly.

Pair Corralation between Highland Global and Simt Dynamic

Given the investment horizon of 90 days Highland Global is expected to generate 1.93 times less return on investment than Simt Dynamic. In addition to that, Highland Global is 1.65 times more volatile than Simt Dynamic Asset. It trades about 0.11 of its total potential returns per unit of risk. Simt Dynamic Asset is currently generating about 0.34 per unit of volatility. If you would invest  1,599  in Simt Dynamic Asset on April 30, 2025 and sell it today you would earn a total of  241.00  from holding Simt Dynamic Asset or generate 15.07% return on investment over 90 days.

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

Highland Global Allocation  vs.  Simt Dynamic Asset

Highland Global Allo

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Global Allocation are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat unfluctuating essential indicators, Highland Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Simt Dynamic Asset

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Dynamic Asset are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Simt Dynamic showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Highland Global and Simt Dynamic

The main advantage of trading using opposite Highland Global and Simt Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Global 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 Highland Global Allocation 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.