Correlation Between Simt Dynamic and Dana Large

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

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

Diversification Opportunities for Simt Dynamic and Dana Large

1.0

Correlation Coefficient

Simt Dynamic  Dana Large

No risk reduction

The 3 months correlation between Simt and Dana is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Simt Dynamic Asset and Dana Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Large Cap and Simt Dynamic 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 Dynamic Asset are associated (or correlated) with Dana Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Large Cap has no effect on the direction of Simt Dynamic i.e., Simt Dynamic and Dana Large go up and down completely randomly.

Pair Corralation between Simt Dynamic and Dana Large

Assuming the 90 days horizon Simt Dynamic is expected to generate 1.07 times less return on investment than Dana Large. But when comparing it to its historical volatility, Simt Dynamic Asset is 1.12 times less risky than Dana Large. It trades about 0.42 of its potential returns per unit of risk. Dana Large Cap is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  1,876  in Dana Large Cap on April 20, 2025 and sell it today you would earn a total of  449.00  from holding Dana Large Cap or generate 23.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Simt Dynamic Asset  vs.  Dana Large Cap

Simt Dynamic Asset

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Dynamic Asset are ranked lower than 32 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Simt Dynamic showed solid returns over the last few months and may actually be approaching a breakup point.

Dana Large Cap

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Dana Large Cap are ranked lower than 31 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Dana Large showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Simt Dynamic and Dana Large

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

The idea behind Simt Dynamic Asset and Dana Large Cap 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.