Correlation Between China Clean and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both China Clean 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 China Clean and Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Clean Energy and Grupo Simec SAB, you can compare the effects of market volatilities on China Clean 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 China Clean with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and Grupo Simec.
Diversification Opportunities for China Clean and Grupo Simec
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy 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 China Clean 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 China Clean Energy 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 China Clean i.e., China Clean and Grupo Simec go up and down completely randomly.
Pair Corralation between China Clean and Grupo Simec
If you would invest 0.01 in China Clean Energy on August 31, 2024 and sell it today you would earn a total of 0.00 from holding China Clean Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 84.99% |
| Values | Daily Returns |
China Clean Energy vs. Grupo Simec SAB
Performance |
| Timeline |
| China Clean Energy |
| Grupo Simec SAB |
China Clean and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Clean and Grupo Simec
The main advantage of trading using opposite China Clean and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean 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.| China Clean vs. Sherwin Williams Co | China Clean vs. Air Liquide SA | China Clean vs. LAir Liquide SA | China Clean vs. Air Products and |
| Grupo Simec vs. Nucor Corp | Grupo Simec vs. Steel Dynamics | Grupo Simec vs. ArcelorMittal SA ADR | Grupo Simec vs. Gerdau SA ADR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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