Correlation Between Grupo Simec and Caspian Services
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Caspian Services at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grupo Simec and Caspian Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Simec SAB and Caspian Services, you can compare the effects of market volatilities on Grupo Simec and Caspian Services 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 Caspian Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Caspian Services.
Diversification Opportunities for Grupo Simec and Caspian Services
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Caspian is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Caspian Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caspian Services 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 Caspian Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caspian Services has no effect on the direction of Grupo Simec i.e., Grupo Simec and Caspian Services go up and down completely randomly.
Pair Corralation between Grupo Simec and Caspian Services
If you would invest 2,577 in Grupo Simec SAB on October 26, 2024 and sell it today you would earn a total of 66.00 from holding Grupo Simec SAB or generate 2.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.7% |
Values | Daily Returns |
Grupo Simec SAB vs. Caspian Services
Performance |
Timeline |
Grupo Simec SAB |
Caspian Services |
Grupo Simec and Caspian Services Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Simec and Caspian Services
The main advantage of trading using opposite Grupo Simec and Caspian Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Caspian Services 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 Caspian Services will offset losses from the drop in Caspian Services' long position.Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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