Correlation Between Grupo Simec and Gryphon Digital

Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Gryphon Digital 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 Gryphon Digital 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 Gryphon Digital Mining, you can compare the effects of market volatilities on Grupo Simec and Gryphon Digital 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 Gryphon Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Gryphon Digital.

Diversification Opportunities for Grupo Simec and Gryphon Digital

0.5

Correlation Coefficient

Grupo Simec  Gryphon Digital

Very weak diversification

The 3 months correlation between Grupo and Gryphon is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Gryphon Digital Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gryphon Digital Mining 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 Gryphon Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gryphon Digital Mining has no effect on the direction of Grupo Simec i.e., Grupo Simec and Gryphon Digital go up and down completely randomly.

Pair Corralation between Grupo Simec and Gryphon Digital

Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 0.61 times more return on investment than Gryphon Digital. However, Grupo Simec SAB is 1.63 times less risky than Gryphon Digital. It trades about 0.02 of its potential returns per unit of risk. Gryphon Digital Mining is currently generating about -0.2 per unit of risk. If you would invest  2,652  in Grupo Simec SAB on December 20, 2024 and sell it today you would earn a total of  30.00  from holding Grupo Simec SAB or generate 1.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.92%
Values	Daily Returns

Grupo Simec SAB  vs.  Gryphon Digital Mining

Grupo Simec SAB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Simec SAB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Grupo Simec is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Gryphon Digital Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gryphon Digital Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Grupo Simec and Gryphon Digital

The main advantage of trading using opposite Grupo Simec and Gryphon Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Gryphon Digital 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 Gryphon Digital will offset losses from the drop in Gryphon Digital's long position.

The idea behind Grupo Simec SAB and Gryphon Digital Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.