Correlation Between Kuka AG and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both Kuka AG 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 Kuka AG and Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuka AG ADR and Grupo Simec SAB, you can compare the effects of market volatilities on Kuka AG 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 Kuka AG with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuka AG and Grupo Simec.
Diversification Opportunities for Kuka AG and Grupo Simec
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kuka and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kuka AG ADR 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 Kuka AG 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 Kuka AG ADR 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 Kuka AG i.e., Kuka AG and Grupo Simec go up and down completely randomly.
Pair Corralation between Kuka AG and Grupo Simec
If you would invest 2,643 in Grupo Simec SAB on November 28, 2024 and sell it today you would lose (3.00) from holding Grupo Simec SAB or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kuka AG ADR vs. Grupo Simec SAB
Performance |
| Timeline |
| Kuka AG ADR |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Grupo Simec SAB |
Kuka AG and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuka AG and Grupo Simec
The main advantage of trading using opposite Kuka AG and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuka AG 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.| Kuka AG vs. Small Cap Premium | Kuka AG vs. Cebu Air ADR | Kuka AG vs. Mayfair Gold Corp | Kuka AG vs. Corporacion America Airports |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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