Correlation Between Grupo Simec and Kuka AG
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Kuka AG 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 Kuka AG 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 Kuka AG ADR, you can compare the effects of market volatilities on Grupo Simec and Kuka AG 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 Kuka AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Kuka AG.
Diversification Opportunities for Grupo Simec and Kuka AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and Kuka is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Kuka AG ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuka AG ADR 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 Kuka AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuka AG ADR has no effect on the direction of Grupo Simec i.e., Grupo Simec and Kuka AG go up and down completely randomly.
Pair Corralation between Grupo Simec and Kuka AG
If you would invest 7,800 in Kuka AG ADR on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Kuka AG ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Grupo Simec SAB vs. Kuka AG ADR
Performance |
| Timeline |
| Grupo Simec SAB |
| Kuka AG ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Simec and Kuka AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Kuka AG
The main advantage of trading using opposite Grupo Simec and Kuka AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Kuka AG 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 Kuka AG will offset losses from the drop in Kuka AG's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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