Correlation Between Grupo Simec and Capital Senior
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Capital Senior 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 Capital Senior 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 Capital Senior Living, you can compare the effects of market volatilities on Grupo Simec and Capital Senior 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 Capital Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Capital Senior.
Diversification Opportunities for Grupo Simec and Capital Senior
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Capital Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Senior Living 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 Capital Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Senior Living has no effect on the direction of Grupo Simec i.e., Grupo Simec and Capital Senior go up and down completely randomly.
Pair Corralation between Grupo Simec and Capital Senior
If you would invest (100.00) in Capital Senior Living on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Capital Senior Living or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Grupo Simec SAB vs. Capital Senior Living
Performance |
| Timeline |
| Grupo Simec SAB |
| Capital Senior Living |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Simec and Capital Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Capital Senior
The main advantage of trading using opposite Grupo Simec and Capital Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Capital Senior 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 Capital Senior will offset losses from the drop in Capital Senior's long position.| Grupo Simec vs. Fortitude Gold Corp | Grupo Simec vs. New Gold | Grupo Simec vs. Galiano Gold | Grupo Simec vs. GoldMining |
| Capital Senior vs. The Cheesecake Factory | Capital Senior vs. Alaska Air Group | Capital Senior vs. Sweetgreen | Capital Senior vs. Mesa Air Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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