Correlation Between Grupo Simec and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Cedar Realty 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 Cedar Realty 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 Cedar Realty Trust, you can compare the effects of market volatilities on Grupo Simec and Cedar Realty 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Cedar Realty.
Diversification Opportunities for Grupo Simec and Cedar Realty
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Cedar is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Grupo Simec i.e., Grupo Simec and Cedar Realty go up and down completely randomly.
Pair Corralation between Grupo Simec and Cedar Realty
Considering the 90-day investment horizon Grupo Simec is expected to generate 23.56 times less return on investment than Cedar Realty. In addition to that, Grupo Simec is 1.22 times more volatile than Cedar Realty Trust. It trades about 0.0 of its total potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.04 per unit of volatility. If you would invest 1,081 in Cedar Realty Trust on August 30, 2024 and sell it today you would earn a total of 539.00 from holding Cedar Realty Trust or generate 49.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.48% |
| Values | Daily Returns |
Grupo Simec SAB vs. Cedar Realty Trust
Performance |
| Timeline |
| Grupo Simec SAB |
| Cedar Realty Trust |
Grupo Simec and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Cedar Realty
The main advantage of trading using opposite Grupo Simec and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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