Correlation Between Grupo Simec and DANBNK
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By analyzing existing cross correlation between Grupo Simec SAB and DANBNK 4375 12 JUN 28, you can compare the effects of market volatilities on Grupo Simec and DANBNK 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 DANBNK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and DANBNK.
Diversification Opportunities for Grupo Simec and DANBNK
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and DANBNK is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and DANBNK 4375 12 JUN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DANBNK 4375 12 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 DANBNK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DANBNK 4375 12 has no effect on the direction of Grupo Simec i.e., Grupo Simec and DANBNK go up and down completely randomly.
Pair Corralation between Grupo Simec and DANBNK
Considering the 90-day investment horizon Grupo Simec SAB is expected to under-perform the DANBNK. In addition to that, Grupo Simec is 4.65 times more volatile than DANBNK 4375 12 JUN 28. It trades about -0.01 of its total potential returns per unit of risk. DANBNK 4375 12 JUN 28 is currently generating about -0.04 per unit of volatility. If you would invest 9,643 in DANBNK 4375 12 JUN 28 on September 4, 2024 and sell it today you would lose (155.00) from holding DANBNK 4375 12 JUN 28 or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 40.61% |
| Values | Daily Returns |
Grupo Simec SAB vs. DANBNK 4375 12 JUN 28
Performance |
| Timeline |
| Grupo Simec SAB |
| DANBNK 4375 12 |
Grupo Simec and DANBNK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and DANBNK
The main advantage of trading using opposite Grupo Simec and DANBNK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, DANBNK 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 DANBNK will offset losses from the drop in DANBNK's long position.| Grupo Simec vs. Constellium Nv | Grupo Simec vs. Century Aluminum | Grupo Simec vs. China Hongqiao Group | Grupo Simec vs. Kaiser Aluminum |
| DANBNK vs. Ironveld Plc | DANBNK vs. Grupo Simec SAB | DANBNK vs. United States Steel | DANBNK vs. Summit Environmental |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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