Correlation Between Grupo Simec and First Ship
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and First Ship 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 First Ship 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 First Ship Lease, you can compare the effects of market volatilities on Grupo Simec and First Ship 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 First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and First Ship.
Diversification Opportunities for Grupo Simec and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease 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 First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of Grupo Simec i.e., Grupo Simec and First Ship go up and down completely randomly.
Pair Corralation between Grupo Simec and First Ship
If you would invest 2,451 in Grupo Simec SAB on December 10, 2024 and sell it today you would earn a total of 206.00 from holding Grupo Simec SAB or generate 8.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 85.71% |
Values | Daily Returns |
Grupo Simec SAB vs. First Ship Lease
Performance |
Timeline |
Grupo Simec SAB |
First Ship Lease |
Grupo Simec and First Ship Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Simec and First Ship
The main advantage of trading using opposite Grupo Simec and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship's 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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