Correlation Between Simt Small and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Simt Small and Simt Multi-asset 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 Small and Simt Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Small Cap and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Simt Small and Simt Multi-asset 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 Small with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Small and Simt Multi-asset.
Diversification Opportunities for Simt Small and Simt Multi-asset
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simt and Simt is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Simt Small Cap and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Simt Small 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 Small Cap are associated (or correlated) with Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Simt Small i.e., Simt Small and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Simt Small and Simt Multi-asset
Assuming the 90 days horizon Simt Small Cap is expected to generate 2.8 times more return on investment than Simt Multi-asset. However, Simt Small is 2.8 times more volatile than Simt Multi Asset Accumulation. It trades about 0.18 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.24 per unit of risk. If you would invest 3,138 in Simt Small Cap on April 25, 2025 and sell it today you would earn a total of 355.00 from holding Simt Small Cap or generate 11.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Simt Small Cap vs. Simt Multi Asset Accumulation
Performance |
Timeline |
Simt Small Cap |
Simt Multi Asset |
Simt Small and Simt Multi-asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simt Small and Simt Multi-asset
The main advantage of trading using opposite Simt Small and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Small position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset's long position.Simt Small vs. Artisan Select Equity | Simt Small vs. Dws Equity Sector | Simt Small vs. Tax Managed International Equity | Simt Small vs. Balanced Fund Retail |
Simt Multi-asset vs. Europac Gold Fund | Simt Multi-asset vs. Gabelli Gold Fund | Simt Multi-asset vs. Invesco Gold Special | Simt Multi-asset vs. Franklin Gold Precious |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |