Correlation Between Growth Strategy and Simt Multi-asset

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

By analyzing existing cross correlation between Growth Strategy Fund and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Growth Strategy and Simt Multi-asset 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 Growth Strategy with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and Simt Multi-asset.

Diversification Opportunities for Growth Strategy and Simt Multi-asset

0.73

Correlation Coefficient

Growth Strategy  Simt Multi-asset

Poor diversification

The 3 months correlation between Growth and Simt is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Growth Strategy 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 Growth Strategy Fund are associated (or correlated) with Simt Multi-asset. 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 Growth Strategy i.e., Growth Strategy and Simt Multi-asset go up and down completely randomly.

Pair Corralation between Growth Strategy and Simt Multi-asset

Assuming the 90 days horizon Growth Strategy Fund is expected to generate 1.26 times more return on investment than Simt Multi-asset. However, Growth Strategy is 1.26 times more volatile than Simt Multi Asset Accumulation. It trades about 0.23 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.22 per unit of risk. If you would invest  1,283  in Growth Strategy Fund on June 1, 2025 and sell it today you would earn a total of  95.00  from holding Growth Strategy Fund or generate 7.4% return on investment over 90 days.

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

Growth Strategy Fund  vs.  Simt Multi Asset Accumulation

Growth Strategy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Strategy Fund are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Growth Strategy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Simt Multi Asset

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Accumulation are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Multi-asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Growth Strategy and Simt Multi-asset

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

The idea behind Growth Strategy Fund and Simt Multi Asset Accumulation 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.