Correlation Between Balanced Fund and Simt Tax

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

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

Diversification Opportunities for Balanced Fund and Simt Tax

-0.08

Correlation Coefficient

Balanced Fund  Simt Tax

Good diversification

The 3 months correlation between Balanced and Simt is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Balanced and Simt Tax Managed International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Tax Managed and Balanced Fund 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 Balanced Fund Balanced are associated (or correlated) with Simt Tax. 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 Balanced Fund i.e., Balanced Fund and Simt Tax go up and down completely randomly.

Pair Corralation between Balanced Fund and Simt Tax

Assuming the 90 days horizon Balanced Fund Balanced is expected to under-perform the Simt Tax. In addition to that, Balanced Fund is 1.07 times more volatile than Simt Tax Managed International. It trades about -0.07 of its total potential returns per unit of risk. Simt Tax Managed International is currently generating about 0.12 per unit of volatility. If you would invest  1,324  in Simt Tax Managed International on September 18, 2025 and sell it today you would earn a total of  49.00  from holding Simt Tax Managed International or generate 3.7% return on investment over 90 days.

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

Balanced Fund Balanced  vs.  Simt Tax Managed International

Balanced Fund Balanced

Risk-Adjusted Performance

Weakest

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

Simt Tax Managed

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Tax Managed International are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Tax is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Balanced Fund and Simt Tax

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

The idea behind Balanced Fund Balanced and Simt Tax Managed International 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.