Correlation Between Grupo Simec and Saia
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Saia 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 Saia 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 Saia Inc, you can compare the effects of market volatilities on Grupo Simec and Saia 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 Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Saia.
Diversification Opportunities for Grupo Simec and Saia
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Saia is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc 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 Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of Grupo Simec i.e., Grupo Simec and Saia go up and down completely randomly.
Pair Corralation between Grupo Simec and Saia
Considering the 90-day investment horizon Grupo Simec SAB is expected to under-perform the Saia. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Simec SAB is 1.08 times less risky than Saia. The stock trades about -0.01 of its potential returns per unit of risk. The Saia Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 42,018 in Saia Inc on September 12, 2024 and sell it today you would earn a total of 10,129 from holding Saia Inc or generate 24.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.94% |
| Values | Daily Returns |
Grupo Simec SAB vs. Saia Inc
Performance |
| Timeline |
| Grupo Simec SAB |
| Saia Inc |
Grupo Simec and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Saia
The main advantage of trading using opposite Grupo Simec and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia's long position.| Grupo Simec vs. Fortitude Gold Corp | Grupo Simec vs. New Gold | Grupo Simec vs. Galiano Gold | Grupo Simec vs. GoldMining |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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