Correlation Between First Ship and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both First Ship 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 First Ship and Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and Grupo Simec SAB, you can compare the effects of market volatilities on First Ship 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 First Ship with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Grupo Simec.
Diversification Opportunities for First Ship and Grupo Simec
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease 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 First Ship 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 First Ship Lease 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 First Ship i.e., First Ship and Grupo Simec go up and down completely randomly.
Pair Corralation between First Ship and Grupo Simec
If you would invest 4.00 in First Ship Lease on August 31, 2024 and sell it today you would earn a total of 0.00 from holding First Ship Lease or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Ship Lease vs. Grupo Simec SAB
Performance |
| Timeline |
| First Ship Lease |
| Grupo Simec SAB |
First Ship and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Grupo Simec
The main advantage of trading using opposite First Ship and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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.| First Ship vs. United Rentals | First Ship vs. Ashtead Gro | First Ship vs. Ashtead Group plc | First Ship vs. AerCap Holdings NV |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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