Correlation Between Grupo Simec and Sanyo Special
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Sanyo Special 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 Sanyo Special 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 Sanyo Special Steel, you can compare the effects of market volatilities on Grupo Simec and Sanyo Special 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 Sanyo Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Sanyo Special.
Diversification Opportunities for Grupo Simec and Sanyo Special
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Sanyo is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Sanyo Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanyo Special Steel 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 Sanyo Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanyo Special Steel has no effect on the direction of Grupo Simec i.e., Grupo Simec and Sanyo Special go up and down completely randomly.
Pair Corralation between Grupo Simec and Sanyo Special
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 53.28 times more return on investment than Sanyo Special. However, Grupo Simec is 53.28 times more volatile than Sanyo Special Steel. It trades about 0.01 of its potential returns per unit of risk. Sanyo Special Steel is currently generating about 0.06 per unit of risk. If you would invest 3,101 in Grupo Simec SAB on August 24, 2024 and sell it today you would lose (381.00) from holding Grupo Simec SAB or give up 12.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.51% |
| Values | Daily Returns |
Grupo Simec SAB vs. Sanyo Special Steel
Performance |
| Timeline |
| Grupo Simec SAB |
| Sanyo Special Steel |
Grupo Simec and Sanyo Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Sanyo Special
The main advantage of trading using opposite Grupo Simec and Sanyo Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Sanyo Special 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 Sanyo Special will offset losses from the drop in Sanyo Special's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
| Sanyo Special vs. Legacy Education | Sanyo Special vs. NVIDIA | Sanyo Special vs. Apple Inc | Sanyo Special vs. Microsoft |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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