Correlation Between IAMGold and Simt Mid

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

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

Diversification Opportunities for IAMGold and Simt Mid

0.7

Correlation Coefficient

IAMGold  Simt Mid

Poor diversification

The 3 months correlation between IAMGold and Simt is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding IAMGold and Simt Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Mid Cap and IAMGold 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 IAMGold are associated (or correlated) with Simt Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Mid Cap has no effect on the direction of IAMGold i.e., IAMGold and Simt Mid go up and down completely randomly.

Pair Corralation between IAMGold and Simt Mid

Considering the 90-day investment horizon IAMGold is expected to generate 4.41 times more return on investment than Simt Mid. However, IAMGold is 4.41 times more volatile than Simt Mid Cap. It trades about 0.25 of its potential returns per unit of risk. Simt Mid Cap is currently generating about 0.09 per unit of risk. If you would invest  686.00  in IAMGold on August 1, 2025 and sell it today you would earn a total of  463.00  from holding IAMGold or generate 67.49% return on investment over 90 days.

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

IAMGold  vs.  Simt Mid Cap

IAMGold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IAMGold are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, IAMGold reported solid returns over the last few months and may actually be approaching a breakup point.

Simt Mid Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Mid Cap are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Simt Mid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with IAMGold and Simt Mid

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

The idea behind IAMGold and Simt Mid Cap 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.