Correlation Between Fomento Econmico and Grupo Simec
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By analyzing existing cross correlation between Fomento Econmico Mexicano and Grupo Simec SAB, you can compare the effects of market volatilities on Fomento Econmico 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 Fomento Econmico with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fomento Econmico and Grupo Simec.
Diversification Opportunities for Fomento Econmico and Grupo Simec
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fomento and Grupo is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fomento Econmico Mexicano 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 Fomento Econmico 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 Fomento Econmico Mexicano 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 Fomento Econmico i.e., Fomento Econmico and Grupo Simec go up and down completely randomly.
Pair Corralation between Fomento Econmico and Grupo Simec
Assuming the 90 days trading horizon Fomento Econmico Mexicano is expected to under-perform the Grupo Simec. In addition to that, Fomento Econmico is 7.18 times more volatile than Grupo Simec SAB. It trades about -0.05 of its total potential returns per unit of risk. Grupo Simec SAB is currently generating about 0.0 per unit of volatility. If you would invest 18,510 in Grupo Simec SAB on September 13, 2024 and sell it today you would lose (11.00) from holding Grupo Simec SAB or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fomento Econmico Mexicano vs. Grupo Simec SAB
Performance |
| Timeline |
| Fomento Econmico Mexicano |
| Grupo Simec SAB |
Fomento Econmico and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fomento Econmico and Grupo Simec
The main advantage of trading using opposite Fomento Econmico and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fomento Econmico 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.| Fomento Econmico vs. Grupo Financiero Banorte | Fomento Econmico vs. Alfa SAB de | Fomento Econmico vs. Grupo Mxico SAB | Fomento Econmico vs. CEMEX SAB de |
| Grupo Simec vs. Monster Beverage Corp | Grupo Simec vs. United States Steel | Grupo Simec vs. New Oriental Education | Grupo Simec vs. Verizon Communications |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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