Correlation Between Vanguard Small-cap and Simt Dynamic

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

By analyzing existing cross correlation between Vanguard Small Cap Value and Simt Dynamic Asset, you can compare the effects of market volatilities on Vanguard Small-cap and Simt Dynamic 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 Vanguard Small-cap with a short position of Simt Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Small-cap and Simt Dynamic.

Diversification Opportunities for Vanguard Small-cap and Simt Dynamic

0.0

Correlation Coefficient

Vanguard Small-cap  Simt Dynamic

Pay attention - limited upside

The 3 months correlation between Vanguard and Simt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Small Cap Value and Simt Dynamic Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Dynamic Asset and Vanguard Small-cap 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 Vanguard Small Cap Value are associated (or correlated) with Simt Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Dynamic Asset has no effect on the direction of Vanguard Small-cap i.e., Vanguard Small-cap and Simt Dynamic go up and down completely randomly.

Pair Corralation between Vanguard Small-cap and Simt Dynamic

If you would invest  4,578  in Vanguard Small Cap Value on May 14, 2025 and sell it today you would earn a total of  163.00  from holding Vanguard Small Cap Value or generate 3.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Vanguard Small Cap Value  vs.  Simt Dynamic Asset

Vanguard Small Cap

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Small Cap Value are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Vanguard Small-cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt Dynamic Asset

Risk-Adjusted Performance

Solid

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

Pair Trading with Vanguard Small-cap and Simt Dynamic

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

The idea behind Vanguard Small Cap Value and Simt Dynamic Asset 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.