Correlation Between Grupo Simec and ENELIM
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By analyzing existing cross correlation between Grupo Simec SAB and ENELIM 75 14 OCT 32, you can compare the effects of market volatilities on Grupo Simec and ENELIM 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 ENELIM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and ENELIM.
Diversification Opportunities for Grupo Simec and ENELIM
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and ENELIM is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and ENELIM 75 14 OCT 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENELIM 75 14 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 ENELIM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENELIM 75 14 has no effect on the direction of Grupo Simec i.e., Grupo Simec and ENELIM go up and down completely randomly.
Pair Corralation between Grupo Simec and ENELIM
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 5.6 times more return on investment than ENELIM. However, Grupo Simec is 5.6 times more volatile than ENELIM 75 14 OCT 32. It trades about 0.01 of its potential returns per unit of risk. ENELIM 75 14 OCT 32 is currently generating about 0.02 per unit of risk. If you would invest 3,074 in Grupo Simec SAB on September 14, 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 Together |
| Strength | Weak |
| Accuracy | 88.79% |
| Values | Daily Returns |
Grupo Simec SAB vs. ENELIM 75 14 OCT 32
Performance |
| Timeline |
| Grupo Simec SAB |
| ENELIM 75 14 |
Grupo Simec and ENELIM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and ENELIM
The main advantage of trading using opposite Grupo Simec and ENELIM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, ENELIM 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 ENELIM will offset losses from the drop in ENELIM's long position.| Grupo Simec vs. Fortitude Gold Corp | Grupo Simec vs. New Gold | Grupo Simec vs. Galiano Gold | Grupo Simec vs. GoldMining |
| ENELIM vs. Grupo Simec SAB | ENELIM vs. Zane Interactive Publishing | ENELIM vs. United States Steel | ENELIM vs. Afya |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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