Correlation Between Simt Multi and Simt High
Can any of the company-specific risk be diversified away by investing in both Simt Multi and Simt High 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 Simt Multi and Simt High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Accumulation and Simt High Yield, you can compare the effects of market volatilities on Simt Multi and Simt High 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 Simt Multi with a short position of Simt High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Simt High.
Diversification Opportunities for Simt Multi and Simt High
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Simt is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Accumulation and Simt High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt High Yield and Simt Multi 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 Simt Multi Asset Accumulation are associated (or correlated) with Simt High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt High Yield has no effect on the direction of Simt Multi i.e., Simt Multi and Simt High go up and down completely randomly.
Pair Corralation between Simt Multi and Simt High
Assuming the 90 days horizon Simt Multi Asset Accumulation is expected to generate 1.75 times more return on investment than Simt High. However, Simt Multi is 1.75 times more volatile than Simt High Yield. It trades about 0.2 of its potential returns per unit of risk. Simt High Yield is currently generating about 0.33 per unit of risk. If you would invest 712.00 in Simt Multi Asset Accumulation on April 28, 2025 and sell it today you would earn a total of 32.00 from holding Simt Multi Asset Accumulation or generate 4.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Simt Multi Asset Accumulation vs. Simt High Yield
Performance |
Timeline |
Simt Multi Asset |
Simt High Yield |
Simt Multi and Simt High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simt Multi and Simt High
The main advantage of trading using opposite Simt Multi and Simt High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi position performs unexpectedly, Simt High 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 High will offset losses from the drop in Simt High's long position.Simt Multi vs. Bbh Intermediate Municipal | Simt Multi vs. Ab Bond Inflation | Simt Multi vs. Multisector Bond Sma | Simt Multi vs. Rbc Ultra Short Fixed |
Simt High vs. John Hancock Financial | Simt High vs. Icon Financial Fund | Simt High vs. Vanguard Financials Index | Simt High vs. 1919 Financial Services |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |