Correlation Between Simt Global and Portfolio

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

By analyzing existing cross correlation between Simt Global Managed and Portfolio 21 Global, you can compare the effects of market volatilities on Simt Global and Portfolio 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 Global with a short position of Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Global and Portfolio.

Diversification Opportunities for Simt Global and Portfolio

0.4

Correlation Coefficient

Simt Global  Portfolio

Very weak diversification

The 3 months correlation between Simt and Portfolio is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Simt Global Managed and Portfolio 21 Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Portfolio 21 Global and Simt Global 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 Global Managed are associated (or correlated) with Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Portfolio 21 Global has no effect on the direction of Simt Global i.e., Simt Global and Portfolio go up and down completely randomly.

Pair Corralation between Simt Global and Portfolio

Assuming the 90 days horizon Simt Global is expected to generate 3.97 times less return on investment than Portfolio. But when comparing it to its historical volatility, Simt Global Managed is 1.53 times less risky than Portfolio. It trades about 0.05 of its potential returns per unit of risk. Portfolio 21 Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  6,066  in Portfolio 21 Global on September 2, 2025 and sell it today you would earn a total of  329.00  from holding Portfolio 21 Global or generate 5.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Simt Global Managed  vs.  Portfolio 21 Global

Simt Global Managed

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Global Managed are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Portfolio 21 Global

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Portfolio 21 Global are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Portfolio 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 Global and Portfolio

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

The idea behind Simt Global Managed and Portfolio 21 Global 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.