Correlation Between Grupo Simec and 60 Degrees
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and 60 Degrees 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 60 Degrees 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 60 Degrees Pharmaceuticals,, you can compare the effects of market volatilities on Grupo Simec and 60 Degrees 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 60 Degrees. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and 60 Degrees.
Diversification Opportunities for Grupo Simec and 60 Degrees
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and SXTPW is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and 60 Degrees Pharmaceuticals, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 60 Degrees Pharmaceu 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 60 Degrees. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 60 Degrees Pharmaceu has no effect on the direction of Grupo Simec i.e., Grupo Simec and 60 Degrees go up and down completely randomly.
Pair Corralation between Grupo Simec and 60 Degrees
Considering the 90-day investment horizon Grupo Simec is expected to generate 89.86 times less return on investment than 60 Degrees. But when comparing it to its historical volatility, Grupo Simec SAB is 30.96 times less risky than 60 Degrees. It trades about 0.1 of its potential returns per unit of risk. 60 Degrees Pharmaceuticals, is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1.29 in 60 Degrees Pharmaceuticals, on September 12, 2024 and sell it today you would earn a total of 2.20 from holding 60 Degrees Pharmaceuticals, or generate 170.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
Grupo Simec SAB vs. 60 Degrees Pharmaceuticals,
Performance |
| Timeline |
| Grupo Simec SAB |
| 60 Degrees Pharmaceu |
Grupo Simec and 60 Degrees Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and 60 Degrees
The main advantage of trading using opposite Grupo Simec and 60 Degrees positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, 60 Degrees 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 60 Degrees will offset losses from the drop in 60 Degrees' long position.| Grupo Simec vs. Nucor Corp | Grupo Simec vs. Steel Dynamics | Grupo Simec vs. ArcelorMittal SA ADR | Grupo Simec vs. Gerdau SA ADR |
| 60 Degrees vs. Equillium | 60 Degrees vs. DiaMedica Therapeutics | 60 Degrees vs. Valneva SE ADR | 60 Degrees vs. Vivani Medical |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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