Correlation Between Grupo Simec and Greencity Acquisition
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Greencity Acquisition 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 Greencity Acquisition 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 Greencity Acquisition Corp, you can compare the effects of market volatilities on Grupo Simec and Greencity Acquisition 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 Greencity Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Greencity Acquisition.
Diversification Opportunities for Grupo Simec and Greencity Acquisition
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Greencity is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Greencity Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greencity Acquisition 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 Greencity Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greencity Acquisition has no effect on the direction of Grupo Simec i.e., Grupo Simec and Greencity Acquisition go up and down completely randomly.
Pair Corralation between Grupo Simec and Greencity Acquisition
If you would invest 2,625 in Grupo Simec SAB on September 4, 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 | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Grupo Simec SAB vs. Greencity Acquisition Corp
Performance |
| Timeline |
| Grupo Simec SAB |
| Greencity Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Simec and Greencity Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Greencity Acquisition
The main advantage of trading using opposite Grupo Simec and Greencity Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Greencity Acquisition 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 Greencity Acquisition will offset losses from the drop in Greencity Acquisition's long position.| Grupo Simec vs. Constellium Nv | Grupo Simec vs. Century Aluminum | Grupo Simec vs. China Hongqiao Group | Grupo Simec vs. Kaiser Aluminum |
| Greencity Acquisition vs. CAVA Group, | Greencity Acquisition vs. RCI Hospitality Holdings | Greencity Acquisition vs. Mesa Air Group | Greencity Acquisition vs. Cannae Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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