Correlation Between Grupo Simec and CIGNA
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By analyzing existing cross correlation between Grupo Simec SAB and CIGNA P 325, you can compare the effects of market volatilities on Grupo Simec and CIGNA 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 CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and CIGNA.
Diversification Opportunities for Grupo Simec and CIGNA
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and CIGNA is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and CIGNA P 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P 325 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 CIGNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIGNA P 325 has no effect on the direction of Grupo Simec i.e., Grupo Simec and CIGNA go up and down completely randomly.
Pair Corralation between Grupo Simec and CIGNA
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 5.63 times more return on investment than CIGNA. However, Grupo Simec is 5.63 times more volatile than CIGNA P 325. It trades about 0.01 of its potential returns per unit of risk. CIGNA P 325 is currently generating about 0.0 per unit of risk. If you would invest 3,074 in Grupo Simec SAB on September 12, 2024 and sell it today you would lose (318.00) from holding Grupo Simec SAB or give up 10.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.73% |
| Values | Daily Returns |
Grupo Simec SAB vs. CIGNA P 325
Performance |
| Timeline |
| Grupo Simec SAB |
| CIGNA P 325 |
Grupo Simec and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and CIGNA
The main advantage of trading using opposite Grupo Simec and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, CIGNA 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 CIGNA will offset losses from the drop in CIGNA's long position.| Grupo Simec vs. Nucor Corp | Grupo Simec vs. Steel Dynamics | Grupo Simec vs. ArcelorMittal SA ADR | Grupo Simec vs. Gerdau SA ADR |
| CIGNA vs. Century Aluminum | CIGNA vs. Grupo Simec SAB | CIGNA vs. Summit Environmental | CIGNA vs. Algoma Steel Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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