Correlation Between Grupo Simec and Osaka Steel
Can any of the company-specific risk be diversified away by investing in both Grupo Simec and Osaka Steel 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 Osaka Steel 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 Osaka Steel Co,, you can compare the effects of market volatilities on Grupo Simec and Osaka Steel 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 Osaka Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Osaka Steel.
Diversification Opportunities for Grupo Simec and Osaka Steel
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Osaka is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Osaka Steel Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osaka Steel Co, 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 Osaka Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osaka Steel Co, has no effect on the direction of Grupo Simec i.e., Grupo Simec and Osaka Steel go up and down completely randomly.
Pair Corralation between Grupo Simec and Osaka Steel
If you would invest 2,700 in Grupo Simec SAB on September 18, 2024 and sell it today you would lose (11.00) from holding Grupo Simec SAB or give up 0.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Simec SAB vs. Osaka Steel Co,
Performance |
Timeline |
Grupo Simec SAB |
Osaka Steel Co, |
Grupo Simec and Osaka Steel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Simec and Osaka Steel
The main advantage of trading using opposite Grupo Simec and Osaka Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec position performs unexpectedly, Osaka Steel 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 Osaka Steel will offset losses from the drop in Osaka Steel's long position.The idea behind Grupo Simec SAB and Osaka Steel Co, 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.Osaka Steel vs. Copa Holdings SA | Osaka Steel vs. United Airlines Holdings | Osaka Steel vs. Delta Air Lines | Osaka Steel vs. SkyWest |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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