Correlation Between Grupo Simec and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Kura Sushi 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 Kura Sushi 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 Kura Sushi USA, you can compare the effects of market volatilities on Grupo Simec and Kura Sushi 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 Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Kura Sushi.
Diversification Opportunities for Grupo Simec and Kura Sushi
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Kura is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Kura Sushi USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Sushi USA 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 Kura Sushi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Sushi USA has no effect on the direction of Grupo Simec i.e., Grupo Simec and Kura Sushi go up and down completely randomly.
Pair Corralation between Grupo Simec and Kura Sushi
Considering the 90-day investment horizon Grupo Simec is expected to generate 7.28 times less return on investment than Kura Sushi. But when comparing it to its historical volatility, Grupo Simec SAB is 1.24 times less risky than Kura Sushi. It trades about 0.01 of its potential returns per unit of risk. Kura Sushi USA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,276 in Kura Sushi USA on September 2, 2024 and sell it today you would earn a total of 4,416 from holding Kura Sushi USA or generate 70.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.51% |
| Values | Daily Returns |
Grupo Simec SAB vs. Kura Sushi USA
Performance |
| Timeline |
| Grupo Simec SAB |
| Kura Sushi USA |
Grupo Simec and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Kura Sushi
The main advantage of trading using opposite Grupo Simec and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Kura Sushi 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 Kura Sushi will offset losses from the drop in Kura Sushi's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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