Correlation Between Grupo Simec and Grupo Financiero
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By analyzing existing cross correlation between Grupo Simec SAB and Grupo Financiero Inbursa, you can compare the effects of market volatilities on Grupo Simec and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Grupo Financiero.
Diversification Opportunities for Grupo Simec and Grupo Financiero
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Grupo is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Grupo Financiero Inbursa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Inbursa 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Inbursa has no effect on the direction of Grupo Simec i.e., Grupo Simec and Grupo Financiero go up and down completely randomly.
Pair Corralation between Grupo Simec and Grupo Financiero
Assuming the 90 days trading horizon Grupo Simec SAB is expected to under-perform the Grupo Financiero. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Simec SAB is 1.57 times less risky than Grupo Financiero. The stock trades about -0.01 of its potential returns per unit of risk. The Grupo Financiero Inbursa is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,510 in Grupo Financiero Inbursa on August 30, 2024 and sell it today you would earn a total of 1,171 from holding Grupo Financiero Inbursa or generate 33.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Simec SAB vs. Grupo Financiero Inbursa
Performance |
| Timeline |
| Grupo Simec SAB |
| Grupo Financiero Inbursa |
Grupo Simec and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Grupo Financiero
The main advantage of trading using opposite Grupo Simec and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Grupo Financiero 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 Grupo Financiero will offset losses from the drop in Grupo Financiero's long position.| Grupo Simec vs. Enphase Energy, | Grupo Simec vs. The Home Depot | Grupo Simec vs. The Select Sector | Grupo Simec vs. Promotora y Operadora |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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