Correlation Between Simt Multi and Cref Inflation
Can any of the company-specific risk be diversified away by investing in both Simt Multi and Cref Inflation 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 Cref Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Inflation and Cref Inflation Linked Bond, you can compare the effects of market volatilities on Simt Multi and Cref Inflation 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 Cref Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Cref Inflation.
Diversification Opportunities for Simt Multi and Cref Inflation
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and Cref is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Cref Inflation Linked Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Inflation Linked 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 Inflation are associated (or correlated) with Cref Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Inflation Linked has no effect on the direction of Simt Multi i.e., Simt Multi and Cref Inflation go up and down completely randomly.
Pair Corralation between Simt Multi and Cref Inflation
Assuming the 90 days horizon Simt Multi is expected to generate 1.97 times less return on investment than Cref Inflation. In addition to that, Simt Multi is 1.25 times more volatile than Cref Inflation Linked Bond. It trades about 0.03 of its total potential returns per unit of risk. Cref Inflation Linked Bond is currently generating about 0.07 per unit of volatility. If you would invest 8,851 in Cref Inflation Linked Bond on April 30, 2025 and sell it today you would earn a total of 67.00 from holding Cref Inflation Linked Bond or generate 0.76% 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 Inflation vs. Cref Inflation Linked Bond
Performance |
Timeline |
Simt Multi Asset |
Cref Inflation Linked |
Simt Multi and Cref Inflation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simt Multi and Cref Inflation
The main advantage of trading using opposite Simt Multi and Cref Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi position performs unexpectedly, Cref Inflation 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 Cref Inflation will offset losses from the drop in Cref Inflation's long position.Simt Multi vs. Ab Bond Inflation | Simt Multi vs. Barings High Yield | Simt Multi vs. Touchstone Premium Yield | Simt Multi vs. Bbh Intermediate Municipal |
Cref Inflation vs. Elfun Diversified Fund | Cref Inflation vs. Conservative Balanced Allocation | Cref Inflation vs. Wells Fargo Diversified | Cref Inflation vs. American Funds Conservative |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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