Correlation Between Grupo Simec and ANTHEM
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By analyzing existing cross correlation between Grupo Simec SAB and ANTHEM INC 455, you can compare the effects of market volatilities on Grupo Simec and ANTHEM 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 ANTHEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and ANTHEM.
Diversification Opportunities for Grupo Simec and ANTHEM
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and ANTHEM is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and ANTHEM INC 455 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTHEM INC 455 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 ANTHEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTHEM INC 455 has no effect on the direction of Grupo Simec i.e., Grupo Simec and ANTHEM go up and down completely randomly.
Pair Corralation between Grupo Simec and ANTHEM
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 5.61 times more return on investment than ANTHEM. However, Grupo Simec is 5.61 times more volatile than ANTHEM INC 455. It trades about 0.08 of its potential returns per unit of risk. ANTHEM INC 455 is currently generating about 0.01 per unit of risk. If you would invest 2,500 in Grupo Simec SAB on November 29, 2024 and sell it today you would earn a total of 140.00 from holding Grupo Simec SAB or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.0% |
| Values | Daily Returns |
Grupo Simec SAB vs. ANTHEM INC 455
Performance |
| Timeline |
| Grupo Simec SAB |
| ANTHEM INC 455 |
Grupo Simec and ANTHEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and ANTHEM
The main advantage of trading using opposite Grupo Simec and ANTHEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, ANTHEM 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 ANTHEM will offset losses from the drop in ANTHEM's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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