Correlation Between Grupo Simec and Kulicke
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Kulicke 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 Kulicke 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 Kulicke and Soffa, you can compare the effects of market volatilities on Grupo Simec and Kulicke 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 Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Kulicke.
Diversification Opportunities for Grupo Simec and Kulicke
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Kulicke is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Kulicke and Soffa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kulicke and Soffa 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 Kulicke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kulicke and Soffa has no effect on the direction of Grupo Simec i.e., Grupo Simec and Kulicke go up and down completely randomly.
Pair Corralation between Grupo Simec and Kulicke
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 1.43 times more return on investment than Kulicke. However, Grupo Simec is 1.43 times more volatile than Kulicke and Soffa. It trades about 0.0 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about 0.0 per unit of risk. If you would invest 3,020 in Grupo Simec SAB on September 1, 2024 and sell it today you would lose (331.00) from holding Grupo Simec SAB or give up 10.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.68% |
| Values | Daily Returns |
Grupo Simec SAB vs. Kulicke and Soffa
Performance |
| Timeline |
| Grupo Simec SAB |
| Kulicke and Soffa |
Grupo Simec and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Kulicke
The main advantage of trading using opposite Grupo Simec and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Kulicke 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 Kulicke will offset losses from the drop in Kulicke's long position.| Grupo Simec vs. Fortitude Gold Corp | Grupo Simec vs. New Gold | Grupo Simec vs. Galiano Gold | Grupo Simec vs. GoldMining |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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