Correlation Between Fortitude Gold and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both Fortitude Gold 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 Fortitude Gold and Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortitude Gold Corp and Grupo Simec SAB, you can compare the effects of market volatilities on Fortitude Gold 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 Fortitude Gold with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortitude Gold and Grupo Simec.
Diversification Opportunities for Fortitude Gold and Grupo Simec
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortitude and Grupo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fortitude Gold Corp 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 Fortitude Gold 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 Fortitude Gold Corp 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 Fortitude Gold i.e., Fortitude Gold and Grupo Simec go up and down completely randomly.
Pair Corralation between Fortitude Gold and Grupo Simec
Given the investment horizon of 90 days Fortitude Gold Corp is expected to under-perform the Grupo Simec. But the otc stock apears to be less risky and, when comparing its historical volatility, Fortitude Gold Corp is 1.57 times less risky than Grupo Simec. The otc stock trades about -0.01 of its potential returns per unit of risk. The Grupo Simec SAB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,179 in Grupo Simec SAB on August 31, 2024 and sell it today you would lose (490.00) from holding Grupo Simec SAB or give up 15.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.99% |
| Values | Daily Returns |
Fortitude Gold Corp vs. Grupo Simec SAB
Performance |
| Timeline |
| Fortitude Gold Corp |
| Grupo Simec SAB |
Fortitude Gold and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortitude Gold and Grupo Simec
The main advantage of trading using opposite Fortitude Gold and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortitude Gold 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.| Fortitude Gold vs. Generationome Properties | Fortitude Gold vs. Gold Resource | Fortitude Gold vs. PermRock Royalty Trust | Fortitude Gold vs. Ellington Residential Mortgage |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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