Correlation Between Barclays PLC and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both Barclays PLC and Grupo Simec 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 Barclays PLC and Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays PLC and Grupo Simec SAB, you can compare the effects of market volatilities on Barclays PLC and Grupo Simec 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 Barclays PLC with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays PLC and Grupo Simec.
Diversification Opportunities for Barclays PLC and Grupo Simec
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and Grupo is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Barclays PLC and Grupo Simec SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Simec SAB and Barclays PLC 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 Barclays PLC are associated (or correlated) with Grupo Simec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Simec SAB has no effect on the direction of Barclays PLC i.e., Barclays PLC and Grupo Simec go up and down completely randomly.
Pair Corralation between Barclays PLC and Grupo Simec
Assuming the 90 days trading horizon Barclays PLC is expected to generate 2.19 times more return on investment than Grupo Simec. However, Barclays PLC is 2.19 times more volatile than Grupo Simec SAB. It trades about 0.09 of its potential returns per unit of risk. Grupo Simec SAB is currently generating about -0.02 per unit of risk. If you would invest 12,672 in Barclays PLC on January 19, 2025 and sell it today you would earn a total of 16,903 from holding Barclays PLC or generate 133.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barclays PLC vs. Grupo Simec SAB
Performance |
| Timeline |
| Barclays PLC |
| Grupo Simec SAB |
Barclays PLC and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays PLC and Grupo Simec
The main advantage of trading using opposite Barclays PLC and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays PLC position performs unexpectedly, Grupo Simec 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 Grupo Simec will offset losses from the drop in Grupo Simec's long position.| Barclays PLC vs. Steel Dynamics | Barclays PLC vs. Verizon Communications | Barclays PLC vs. McEwen Mining | Barclays PLC vs. FIBRA Storage |
| Grupo Simec vs. Samsung Electronics Co | Grupo Simec vs. Taiwan Semiconductor Manufacturing | Grupo Simec vs. Sony Group | Grupo Simec vs. Alibaba Group Holding |
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.
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