Correlation Between Simplify Interest and Acquirers

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

By analyzing existing cross correlation between Simplify Interest Rate and The Acquirers, you can compare the effects of market volatilities on Simplify Interest and Acquirers 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 Interest with a short position of Acquirers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simplify Interest and Acquirers.

Diversification Opportunities for Simplify Interest and Acquirers

-0.3

Correlation Coefficient

Simplify Interest  Acquirers

Very good diversification

The 3 months correlation between Simplify and Acquirers is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Simplify Interest Rate and The Acquirers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acquirers and Simplify Interest 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 Interest Rate are associated (or correlated) with Acquirers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acquirers has no effect on the direction of Simplify Interest i.e., Simplify Interest and Acquirers go up and down completely randomly.

Pair Corralation between Simplify Interest and Acquirers

Given the investment horizon of 90 days Simplify Interest Rate is expected to under-perform the Acquirers. In addition to that, Simplify Interest is 1.52 times more volatile than The Acquirers. It trades about -0.02 of its total potential returns per unit of risk. The Acquirers is currently generating about 0.15 per unit of volatility. If you would invest  3,445  in The Acquirers on May 27, 2025 and sell it today you would earn a total of  458.80  from holding The Acquirers or generate 13.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Simplify Interest Rate  vs.  The Acquirers

Simplify Interest Rate

Risk-Adjusted Performance

Weakest

Over the last 90 days Simplify Interest Rate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Simplify Interest is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Acquirers

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Acquirers are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward indicators, Acquirers reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Simplify Interest and Acquirers

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

The idea behind Simplify Interest Rate and The Acquirers 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.