Correlation Between SCHNITZER STEEL and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both SCHNITZER STEEL 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 SCHNITZER STEEL and Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCHNITZER STEEL INDUSTRIES and Grupo Simec SAB, you can compare the effects of market volatilities on SCHNITZER STEEL 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 SCHNITZER STEEL with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHNITZER STEEL and Grupo Simec.
Diversification Opportunities for SCHNITZER STEEL and Grupo Simec
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCHNITZER and Grupo is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SCHNITZER STEEL INDUSTRIES 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 SCHNITZER STEEL 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 SCHNITZER STEEL INDUSTRIES 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 SCHNITZER STEEL i.e., SCHNITZER STEEL and Grupo Simec go up and down completely randomly.
Pair Corralation between SCHNITZER STEEL and Grupo Simec
If you would invest 3,277 in SCHNITZER STEEL INDUSTRIES on August 28, 2024 and sell it today you would earn a total of 0.00 from holding SCHNITZER STEEL INDUSTRIES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
SCHNITZER STEEL INDUSTRIES vs. Grupo Simec SAB
Performance |
| Timeline |
| SCHNITZER STEEL INDU |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Grupo Simec SAB |
SCHNITZER STEEL and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHNITZER STEEL and Grupo Simec
The main advantage of trading using opposite SCHNITZER STEEL and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHNITZER STEEL 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.| SCHNITZER STEEL vs. Olympic Steel | SCHNITZER STEEL vs. Universal Stainless Alloy | SCHNITZER STEEL vs. Outokumpu Oyj ADR | SCHNITZER STEEL vs. Usinas Siderurgicas de |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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