Correlation Between Grupo Simec and AmTrust Financial
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and AmTrust Financial 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 Grupo Simec and AmTrust Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Simec SAB and AmTrust Financial Services, you can compare the effects of market volatilities on Grupo Simec and AmTrust Financial 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 Simec with a short position of AmTrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and AmTrust Financial.
Diversification Opportunities for Grupo Simec and AmTrust Financial
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and AmTrust is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and AmTrust Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmTrust Financial and Grupo Simec 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 Simec SAB are associated (or correlated) with AmTrust Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmTrust Financial has no effect on the direction of Grupo Simec i.e., Grupo Simec and AmTrust Financial go up and down completely randomly.
Pair Corralation between Grupo Simec and AmTrust Financial
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 1.42 times more return on investment than AmTrust Financial. However, Grupo Simec is 1.42 times more volatile than AmTrust Financial Services. It trades about 0.06 of its potential returns per unit of risk. AmTrust Financial Services is currently generating about -0.07 per unit of risk. If you would invest 2,625 in Grupo Simec SAB on September 5, 2024 and sell it today you would earn a total of 64.00 from holding Grupo Simec SAB or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grupo Simec SAB vs. AmTrust Financial Services
Performance |
| Timeline |
| Grupo Simec SAB |
| AmTrust Financial |
Grupo Simec and AmTrust Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and AmTrust Financial
The main advantage of trading using opposite Grupo Simec and AmTrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, AmTrust Financial 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 AmTrust Financial will offset losses from the drop in AmTrust Financial's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
| AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |