Correlation Between Grupo Simec and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Proficient Auto 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 Proficient Auto 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 Proficient Auto Logistics,, you can compare the effects of market volatilities on Grupo Simec and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Proficient Auto.
Diversification Opportunities for Grupo Simec and Proficient Auto
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Proficient is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Grupo Simec i.e., Grupo Simec and Proficient Auto go up and down completely randomly.
Pair Corralation between Grupo Simec and Proficient Auto
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 1.47 times more return on investment than Proficient Auto. However, Grupo Simec is 1.47 times more volatile than Proficient Auto Logistics,. It trades about 0.0 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about -0.25 per unit of risk. If you would invest 2,702 in Grupo Simec SAB on November 9, 2024 and sell it today you would lose (69.00) from holding Grupo Simec SAB or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Simec SAB vs. Proficient Auto Logistics,
Performance |
| Timeline |
| Grupo Simec SAB |
| Proficient Auto Logi |
Grupo Simec and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Proficient Auto
The main advantage of trading using opposite Grupo Simec and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
| Proficient Auto vs. Marfrig Global Foods | Proficient Auto vs. Glorywin Entertainment Group | Proficient Auto vs. Sysco | Proficient Auto vs. Paranovus Entertainment Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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