Correlation Between Grupo Simec and Contextlogic
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Contextlogic 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 Contextlogic 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 Contextlogic, you can compare the effects of market volatilities on Grupo Simec and Contextlogic 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 Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Contextlogic.
Diversification Opportunities for Grupo Simec and Contextlogic
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Contextlogic is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic 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 Contextlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contextlogic has no effect on the direction of Grupo Simec i.e., Grupo Simec and Contextlogic go up and down completely randomly.
Pair Corralation between Grupo Simec and Contextlogic
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 0.63 times more return on investment than Contextlogic. However, Grupo Simec SAB is 1.59 times less risky than Contextlogic. It trades about 0.01 of its potential returns per unit of risk. Contextlogic is currently generating about -0.01 per unit of risk. If you would invest 3,101 in Grupo Simec SAB on August 27, 2024 and sell it today you would lose (524.00) from holding Grupo Simec SAB or give up 16.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.51% |
| Values | Daily Returns |
Grupo Simec SAB vs. Contextlogic
Performance |
| Timeline |
| Grupo Simec SAB |
| Contextlogic |
Grupo Simec and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Contextlogic
The main advantage of trading using opposite Grupo Simec and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Contextlogic 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 Contextlogic will offset losses from the drop in Contextlogic's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
| Contextlogic vs. Grupo Simec SAB | Contextlogic vs. Titan International | Contextlogic vs. Amkor Technology | Contextlogic vs. Kaiser Aluminum |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |