Correlation Between Grupo Simec and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Osisko Gold 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 Osisko Gold 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 Osisko Gold Ro, you can compare the effects of market volatilities on Grupo Simec and Osisko Gold 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 Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Osisko Gold.
Diversification Opportunities for Grupo Simec and Osisko Gold
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Osisko is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Osisko Gold Ro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Gold Ro 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 Osisko Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Gold Ro has no effect on the direction of Grupo Simec i.e., Grupo Simec and Osisko Gold go up and down completely randomly.
Pair Corralation between Grupo Simec and Osisko Gold
Considering the 90-day investment horizon Grupo Simec SAB is expected to under-perform the Osisko Gold. In addition to that, Grupo Simec is 1.51 times more volatile than Osisko Gold Ro. It trades about -0.01 of its total potential returns per unit of risk. Osisko Gold Ro is currently generating about 0.09 per unit of volatility. If you would invest 1,628 in Osisko Gold Ro on September 12, 2024 and sell it today you would earn a total of 332.00 from holding Osisko Gold Ro or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.71% |
| Values | Daily Returns |
Grupo Simec SAB vs. Osisko Gold Ro
Performance |
| Timeline |
| Grupo Simec SAB |
| Osisko Gold Ro |
Grupo Simec and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Osisko Gold
The main advantage of trading using opposite Grupo Simec and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Osisko Gold 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 Osisko Gold will offset losses from the drop in Osisko Gold's long position.| Grupo Simec vs. Nucor Corp | Grupo Simec vs. Steel Dynamics | Grupo Simec vs. ArcelorMittal SA ADR | Grupo Simec vs. Gerdau SA ADR |
| Osisko Gold vs. Wheaton Precious Metals | Osisko Gold vs. Franco Nevada | Osisko Gold vs. Royal Gold | Osisko Gold vs. Fortuna Silver Mines |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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