Correlation Between Versatile Bond and Simt Multi

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

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

Diversification Opportunities for Versatile Bond and Simt Multi

0.68

Correlation Coefficient

Versatile Bond  Simt Multi

Poor diversification

The 3 months correlation between Versatile and Simt is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Versatile Bond Portfolio and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Versatile Bond 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 Versatile Bond Portfolio 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 Versatile Bond i.e., Versatile Bond and Simt Multi go up and down completely randomly.

Pair Corralation between Versatile Bond and Simt Multi

Assuming the 90 days horizon Versatile Bond Portfolio is expected to generate 0.44 times more return on investment than Simt Multi. However, Versatile Bond Portfolio is 2.25 times less risky than Simt Multi. It trades about 0.39 of its potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.07 per unit of risk. If you would invest  6,466  in Versatile Bond Portfolio on May 13, 2025 and sell it today you would earn a total of  168.00  from holding Versatile Bond Portfolio or generate 2.6% return on investment over 90 days.

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

Versatile Bond Portfolio  vs.  Simt Multi Asset Inflation

Versatile Bond Portfolio

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Versatile Bond Portfolio are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Versatile Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt Multi Asset

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Inflation are ranked lower than 5 (%) 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 Versatile Bond and Simt Multi

The main advantage of trading using opposite Versatile Bond and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Versatile Bond 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 Versatile Bond Portfolio and Simt Multi Asset Inflation 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.