Correlation Between Grupo Simec and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Sweetgreen 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 Sweetgreen 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 Sweetgreen, you can compare the effects of market volatilities on Grupo Simec and Sweetgreen 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 Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Sweetgreen.
Diversification Opportunities for Grupo Simec and Sweetgreen
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Sweetgreen is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen 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 Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of Grupo Simec i.e., Grupo Simec and Sweetgreen go up and down completely randomly.
Pair Corralation between Grupo Simec and Sweetgreen
Considering the 90-day investment horizon Grupo Simec is expected to generate 3.28 times less return on investment than Sweetgreen. But when comparing it to its historical volatility, Grupo Simec SAB is 2.1 times less risky than Sweetgreen. It trades about 0.06 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,805 in Sweetgreen on September 3, 2024 and sell it today you would earn a total of 293.00 from holding Sweetgreen or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Simec SAB vs. Sweetgreen
Performance |
| Timeline |
| Grupo Simec SAB |
| Sweetgreen |
Grupo Simec and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Sweetgreen
The main advantage of trading using opposite Grupo Simec and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Sweetgreen 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 Sweetgreen will offset losses from the drop in Sweetgreen's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
| Sweetgreen vs. Highway Holdings Limited | Sweetgreen vs. QCR Holdings | Sweetgreen vs. Partner Communications | Sweetgreen vs. Acumen Pharmaceuticals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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