Correlation Between Grupo Simec and Steel Dynamics
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Steel Dynamics 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 Steel Dynamics 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 Steel Dynamics, you can compare the effects of market volatilities on Grupo Simec and Steel Dynamics 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 Steel Dynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Steel Dynamics.
Diversification Opportunities for Grupo Simec and Steel Dynamics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Steel is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Steel Dynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Dynamics 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 Steel Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Dynamics has no effect on the direction of Grupo Simec i.e., Grupo Simec and Steel Dynamics go up and down completely randomly.
Pair Corralation between Grupo Simec and Steel Dynamics
Considering the 90-day investment horizon Grupo Simec SAB is expected to under-perform the Steel Dynamics. In addition to that, Grupo Simec is 1.1 times more volatile than Steel Dynamics. It trades about -0.02 of its total potential returns per unit of risk. Steel Dynamics is currently generating about -0.01 per unit of volatility. If you would invest 13,018 in Steel Dynamics on September 13, 2024 and sell it today you would lose (335.00) from holding Steel Dynamics or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Grupo Simec SAB vs. Steel Dynamics
Performance |
| Timeline |
| Grupo Simec SAB |
| Steel Dynamics |
Grupo Simec and Steel Dynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Steel Dynamics
The main advantage of trading using opposite Grupo Simec and Steel Dynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Steel Dynamics 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 Steel Dynamics will offset losses from the drop in Steel Dynamics' long position.| Grupo Simec vs. Fortitude Gold Corp | Grupo Simec vs. New Gold | Grupo Simec vs. Galiano Gold | Grupo Simec vs. GoldMining |
| Steel Dynamics vs. Cleveland Cliffs | Steel Dynamics vs. United States Steel | Steel Dynamics vs. ArcelorMittal SA ADR | Steel Dynamics vs. Reliance Steel 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Positions Ratings 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 | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |