Correlation Between Simt Multi-asset and Ivy Natural

Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Ivy Natural 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-asset and Ivy Natural 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 Ivy Natural Resources, you can compare the effects of market volatilities on Simt Multi-asset and Ivy Natural 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-asset with a short position of Ivy Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Ivy Natural.

Diversification Opportunities for Simt Multi-asset and Ivy Natural

0.91

Correlation Coefficient

Simt Multi-asset  Ivy Natural

Almost no diversification

The 3 months correlation between Simt and Ivy is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Capital and Ivy Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Natural Resources and Simt Multi-asset 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 Ivy Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Natural Resources has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Ivy Natural go up and down completely randomly.

Pair Corralation between Simt Multi-asset and Ivy Natural

Assuming the 90 days horizon Simt Multi Asset Capital is expected to generate 0.11 times more return on investment than Ivy Natural. However, Simt Multi Asset Capital is 8.87 times less risky than Ivy Natural. It trades about 0.19 of its potential returns per unit of risk. Ivy Natural Resources is currently generating about 0.02 per unit of risk. If you would invest  1,002  in Simt Multi Asset Capital on May 3, 2025 and sell it today you would earn a total of  4.00  from holding Simt Multi Asset Capital or generate 0.4% 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 Capital  vs.  Ivy Natural Resources

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-asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ivy Natural Resources

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ivy Natural Resources are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ivy Natural showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Simt Multi-asset and Ivy Natural

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

The idea behind Simt Multi Asset Capital and Ivy Natural Resources 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.