Correlation Between Simt Tax-managed and Simt Multi

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

By analyzing existing cross correlation between Simt Tax Managed Smallmid and Simt Multi Asset Capital, you can compare the effects of market volatilities on Simt Tax-managed and Simt Multi 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 Tax-managed with a short position of Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Tax-managed and Simt Multi.

Diversification Opportunities for Simt Tax-managed and Simt Multi

0.12

Correlation Coefficient

Simt Tax-managed  Simt Multi

Average diversification

The 3 months correlation between Simt and Simt is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Simt Tax Managed Smallmid and Simt Multi Asset Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Simt Tax-managed 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 Tax Managed Smallmid are associated (or correlated) with Simt Multi. 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 Tax-managed i.e., Simt Tax-managed and Simt Multi go up and down completely randomly.

Pair Corralation between Simt Tax-managed and Simt Multi

Assuming the 90 days horizon Simt Tax Managed Smallmid is expected to under-perform the Simt Multi. In addition to that, Simt Tax-managed is 5.34 times more volatile than Simt Multi Asset Capital. It trades about -0.26 of its total potential returns per unit of risk. Simt Multi Asset Capital is currently generating about -0.18 per unit of volatility. If you would invest  1,033  in Simt Multi Asset Capital on August 23, 2025 and sell it today you would lose (7.00) from holding Simt Multi Asset Capital or give up 0.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Simt Tax Managed Smallmid  vs.  Simt Multi Asset Capital

Simt Tax Managed

Risk-Adjusted Performance

Weakest

Over the last 90 days Simt Tax Managed Smallmid has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Simt Tax-managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt Multi Asset

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Capital are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Multi 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 Tax-managed and Simt Multi

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

The idea behind Simt Tax Managed Smallmid and Simt Multi Asset Capital 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.