Correlation Between US Global and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both US Global 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 US Global and Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Grupo Simec SAB, you can compare the effects of market volatilities on US Global 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 US Global with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Grupo Simec.
Diversification Opportunities for US Global and Grupo Simec
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between GROW and Grupo is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors 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 US Global 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 US Global Investors 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 US Global i.e., US Global and Grupo Simec go up and down completely randomly.
Pair Corralation between US Global and Grupo Simec
Given the investment horizon of 90 days US Global Investors is expected to generate 0.43 times more return on investment than Grupo Simec. However, US Global Investors is 2.31 times less risky than Grupo Simec. It trades about 0.04 of its potential returns per unit of risk. Grupo Simec SAB is currently generating about -0.03 per unit of risk. If you would invest 242.00 in US Global Investors on October 21, 2024 and sell it today you would earn a total of 1.00 from holding US Global Investors or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
US Global Investors vs. Grupo Simec SAB
Performance |
| Timeline |
| US Global Investors |
| Grupo Simec SAB |
US Global and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Grupo Simec
The main advantage of trading using opposite US Global and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global 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.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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