Correlation Between Grupo Financiero and Grupo Simec
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By analyzing existing cross correlation between Grupo Financiero Banorte and Grupo Simec SAB, you can compare the effects of market volatilities on Grupo Financiero 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 Grupo Financiero with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Grupo Simec.
Diversification Opportunities for Grupo Financiero and Grupo Simec
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and Grupo is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Banorte 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 Grupo Financiero 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 Grupo Financiero Banorte 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 Grupo Financiero i.e., Grupo Financiero and Grupo Simec go up and down completely randomly.
Pair Corralation between Grupo Financiero and Grupo Simec
Assuming the 90 days trading horizon Grupo Financiero Banorte is expected to generate 1.56 times more return on investment than Grupo Simec. However, Grupo Financiero is 1.56 times more volatile than Grupo Simec SAB. It trades about 0.02 of its potential returns per unit of risk. Grupo Simec SAB is currently generating about -0.02 per unit of risk. If you would invest 12,349 in Grupo Financiero Banorte on September 2, 2024 and sell it today you would earn a total of 1,184 from holding Grupo Financiero Banorte or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Financiero Banorte vs. Grupo Simec SAB
Performance |
| Timeline |
| Grupo Financiero Banorte |
| Grupo Simec SAB |
Grupo Financiero and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Grupo Simec
The main advantage of trading using opposite Grupo Financiero and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero 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.| Grupo Financiero vs. Deutsche Bank Aktiengesellschaft | Grupo Financiero vs. The Bank of | Grupo Financiero vs. Monster Beverage Corp | Grupo Financiero vs. Verizon Communications |
| Grupo Simec vs. Barclays PLC | Grupo Simec vs. Taiwan Semiconductor Manufacturing | Grupo Simec vs. Grupo Financiero Banorte | Grupo Simec vs. Samsung Electronics Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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