Correlation Between Siit Large and Simt E

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

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

Diversification Opportunities for Siit Large and Simt E

0.77

Correlation Coefficient

Siit Large  Simt E

Poor diversification

The 3 months correlation between Siit and Simt is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Simt E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt E Fixed and Siit Large 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 Siit Large Cap are associated (or correlated) with Simt E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt E Fixed has no effect on the direction of Siit Large i.e., Siit Large and Simt E go up and down completely randomly.

Pair Corralation between Siit Large and Simt E

Assuming the 90 days horizon Siit Large Cap is expected to generate 2.94 times more return on investment than Simt E. However, Siit Large is 2.94 times more volatile than Simt E Fixed. It trades about 0.09 of its potential returns per unit of risk. Simt E Fixed is currently generating about 0.05 per unit of risk. If you would invest  1,170  in Siit Large Cap on August 10, 2025 and sell it today you would earn a total of  29.00  from holding Siit Large Cap or generate 2.48% return on investment over 90 days.

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

Siit Large Cap  vs.  Simt E Fixed

Siit Large Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Large Cap are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt E Fixed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Simt E Fixed are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt E is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Siit Large and Simt E

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

The idea behind Siit Large Cap and Simt E Fixed 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.