Correlation Between Coupang LLC and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both Coupang LLC 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 Coupang LLC and Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Grupo Simec SAB, you can compare the effects of market volatilities on Coupang LLC 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 Coupang LLC with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Grupo Simec.
Diversification Opportunities for Coupang LLC and Grupo Simec
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coupang and Grupo is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC 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 Coupang LLC 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 Coupang LLC 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 Coupang LLC i.e., Coupang LLC and Grupo Simec go up and down completely randomly.
Pair Corralation between Coupang LLC and Grupo Simec
Given the investment horizon of 90 days Coupang LLC is expected to generate 3.62 times less return on investment than Grupo Simec. In addition to that, Coupang LLC is 1.55 times more volatile than Grupo Simec SAB. It trades about 0.01 of its total potential returns per unit of risk. Grupo Simec SAB is currently generating about 0.08 per unit of volatility. If you would invest 2,600 in Grupo Simec SAB on September 2, 2024 and sell it today you would earn a total of 89.00 from holding Grupo Simec SAB or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. Grupo Simec SAB
Performance |
| Timeline |
| Coupang LLC |
| Grupo Simec SAB |
Coupang LLC and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Grupo Simec
The main advantage of trading using opposite Coupang LLC and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC 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.| Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding | Coupang LLC vs. Sea |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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