Correlation Between Simt Multi and Sdit Short

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

By analyzing existing cross correlation between Simt Multi Asset Capital and Sdit Short Duration, you can compare the effects of market volatilities on Simt Multi and Sdit Short 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 Sdit Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Sdit Short.

Diversification Opportunities for Simt Multi and Sdit Short

0.6

Correlation Coefficient

Simt Multi  Sdit Short

Poor diversification

The 3 months correlation between Simt and Sdit is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Capital and Sdit Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sdit Short Duration 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 Capital are associated (or correlated) with Sdit Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sdit Short Duration has no effect on the direction of Simt Multi i.e., Simt Multi and Sdit Short go up and down completely randomly.

Pair Corralation between Simt Multi and Sdit Short

Assuming the 90 days horizon Simt Multi Asset Capital is expected to generate 0.86 times more return on investment than Sdit Short. However, Simt Multi Asset Capital is 1.17 times less risky than Sdit Short. It trades about 0.29 of its potential returns per unit of risk. Sdit Short Duration is currently generating about 0.04 per unit of risk. If you would invest  985.00  in Simt Multi Asset Capital on April 30, 2025 and sell it today you would earn a total of  20.00  from holding Simt Multi Asset Capital or generate 2.03% return on investment over 90 days.

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

Simt Multi Asset Capital  vs.  Sdit Short Duration

Simt Multi Asset

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Capital are ranked lower than 23 (%) 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.

Sdit Short Duration

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sdit Short Duration are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Sdit Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Simt Multi and Sdit Short

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

The idea behind Simt Multi Asset Capital and Sdit Short Duration 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.