Correlation Between Grupo Simec and SmartStop Self
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and SmartStop Self 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 SmartStop Self 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 SmartStop Self Storage, you can compare the effects of market volatilities on Grupo Simec and SmartStop Self 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 SmartStop Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and SmartStop Self.
Diversification Opportunities for Grupo Simec and SmartStop Self
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and SmartStop is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and SmartStop Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartStop Self Storage 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 SmartStop Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartStop Self Storage has no effect on the direction of Grupo Simec i.e., Grupo Simec and SmartStop Self go up and down completely randomly.
Pair Corralation between Grupo Simec and SmartStop Self
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 18.36 times more return on investment than SmartStop Self. However, Grupo Simec is 18.36 times more volatile than SmartStop Self Storage. It trades about 0.06 of its potential returns per unit of risk. SmartStop Self Storage is currently generating about 0.21 per unit of risk. If you would invest 2,625 in Grupo Simec SAB on September 5, 2024 and sell it today you would earn a total of 64.00 from holding Grupo Simec SAB or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grupo Simec SAB vs. SmartStop Self Storage
Performance |
| Timeline |
| Grupo Simec SAB |
| SmartStop Self Storage |
Grupo Simec and SmartStop Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and SmartStop Self
The main advantage of trading using opposite Grupo Simec and SmartStop Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, SmartStop Self 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 SmartStop Self will offset losses from the drop in SmartStop Self's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
| SmartStop Self vs. Palo Alto Networks | SmartStop Self vs. Singular Genomics Systems | SmartStop Self vs. BlackRock | SmartStop Self vs. Deckers Outdoor |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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