Correlation Between Upright Growth and Simt Tax-managed

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

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

Diversification Opportunities for Upright Growth and Simt Tax-managed

0.71

Correlation Coefficient

Upright Growth  Simt Tax-managed

Poor diversification

The 3 months correlation between Upright and Simt is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Upright Growth Income and Simt Tax Managed Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Tax Managed and Upright Growth 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 Upright Growth Income are associated (or correlated) with Simt Tax-managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Tax Managed has no effect on the direction of Upright Growth i.e., Upright Growth and Simt Tax-managed go up and down completely randomly.

Pair Corralation between Upright Growth and Simt Tax-managed

Assuming the 90 days horizon Upright Growth Income is expected to generate 1.23 times more return on investment than Simt Tax-managed. However, Upright Growth is 1.23 times more volatile than Simt Tax Managed Smallmid. It trades about 0.19 of its potential returns per unit of risk. Simt Tax Managed Smallmid is currently generating about 0.1 per unit of risk. If you would invest  2,185  in Upright Growth Income on July 4, 2025 and sell it today you would earn a total of  315.00  from holding Upright Growth Income or generate 14.42% return on investment over 90 days.

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

Upright Growth Income  vs.  Simt Tax Managed Smallmid

Upright Growth Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Upright Growth Income are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Upright Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Simt Tax Managed

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Tax Managed Smallmid are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. 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.

Pair Trading with Upright Growth and Simt Tax-managed

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

The idea behind Upright Growth Income and Simt Tax Managed Smallmid 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.