Correlation Between Grupo Simec and 552953CD1
Specify exactly 2 symbols:
By analyzing existing cross correlation between Grupo Simec SAB and MGM Resorts International, you can compare the effects of market volatilities on Grupo Simec and 552953CD1 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 552953CD1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and 552953CD1.
Diversification Opportunities for Grupo Simec and 552953CD1
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and 552953CD1 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International 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 552953CD1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of Grupo Simec i.e., Grupo Simec and 552953CD1 go up and down completely randomly.
Pair Corralation between Grupo Simec and 552953CD1
Considering the 90-day investment horizon Grupo Simec SAB is expected to under-perform the 552953CD1. In addition to that, Grupo Simec is 5.62 times more volatile than MGM Resorts International. It trades about -0.07 of its total potential returns per unit of risk. MGM Resorts International is currently generating about -0.03 per unit of volatility. If you would invest 9,708 in MGM Resorts International on August 26, 2024 and sell it today you would lose (174.00) from holding MGM Resorts International or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.52% |
| Values | Daily Returns |
Grupo Simec SAB vs. MGM Resorts International
Performance |
| Timeline |
| Grupo Simec SAB |
| MGM Resorts International |
Grupo Simec and 552953CD1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and 552953CD1
The main advantage of trading using opposite Grupo Simec and 552953CD1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, 552953CD1 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 552953CD1 will offset losses from the drop in 552953CD1's long position.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
| 552953CD1 vs. Corporacion America Airports | 552953CD1 vs. Century Aluminum | 552953CD1 vs. Alaska Air Group | 552953CD1 vs. Grupo Simec SAB |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |