Correlation Between BingEx and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both BingEx 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 BingEx and Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BingEx and Grupo Simec SAB, you can compare the effects of market volatilities on BingEx 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 BingEx with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of BingEx and Grupo Simec.
Diversification Opportunities for BingEx and Grupo Simec
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BingEx and Grupo is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding BingEx 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 BingEx 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 BingEx 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 BingEx i.e., BingEx and Grupo Simec go up and down completely randomly.
Pair Corralation between BingEx and Grupo Simec
Considering the 90-day investment horizon BingEx is expected to under-perform the Grupo Simec. In addition to that, BingEx is 2.74 times more volatile than Grupo Simec SAB. It trades about -0.4 of its total potential returns per unit of risk. Grupo Simec SAB is currently generating about 0.06 per unit of volatility. If you would invest 2,625 in Grupo Simec SAB on September 4, 2024 and sell it today you would earn a total of 64.00 from holding Grupo Simec SAB or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BingEx vs. Grupo Simec SAB
Performance |
| Timeline |
| BingEx |
| Grupo Simec SAB |
BingEx and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BingEx and Grupo Simec
The main advantage of trading using opposite BingEx and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BingEx 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.| BingEx vs. Grupo Simec SAB | BingEx vs. LENSAR Inc | BingEx vs. Cardinal Health | BingEx vs. Alaska Air Group |
| Grupo Simec vs. Constellium Nv | Grupo Simec vs. Century Aluminum | Grupo Simec vs. China Hongqiao Group | Grupo Simec vs. Kaiser Aluminum |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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