Correlation Between Agro Capital and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both Agro Capital and Grupo Bimbo 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 Agro Capital and Grupo Bimbo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agro Capital Management and Grupo Bimbo SAB, you can compare the effects of market volatilities on Agro Capital and Grupo Bimbo 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 Agro Capital with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agro Capital and Grupo Bimbo.
Diversification Opportunities for Agro Capital and Grupo Bimbo
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agro and Grupo is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Agro Capital Management and Grupo Bimbo SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Bimbo SAB and Agro Capital 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 Agro Capital Management are associated (or correlated) with Grupo Bimbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Bimbo SAB has no effect on the direction of Agro Capital i.e., Agro Capital and Grupo Bimbo go up and down completely randomly.
Pair Corralation between Agro Capital and Grupo Bimbo
Given the investment horizon of 90 days Agro Capital Management is expected to generate 6.56 times more return on investment than Grupo Bimbo. However, Agro Capital is 6.56 times more volatile than Grupo Bimbo SAB. It trades about 0.07 of its potential returns per unit of risk. Grupo Bimbo SAB is currently generating about 0.0 per unit of risk. If you would invest 2.30 in Agro Capital Management on September 3, 2024 and sell it today you would lose (0.07) from holding Agro Capital Management or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.85% |
| Values | Daily Returns |
Agro Capital Management vs. Grupo Bimbo SAB
Performance |
| Timeline |
| Agro Capital Management |
| Grupo Bimbo SAB |
Agro Capital and Grupo Bimbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agro Capital and Grupo Bimbo
The main advantage of trading using opposite Agro Capital and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agro Capital position performs unexpectedly, Grupo Bimbo 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 Bimbo will offset losses from the drop in Grupo Bimbo's long position.| Agro Capital vs. Grupo Bimbo SAB | Agro Capital vs. Grupo Financiero Inbursa | Agro Capital vs. Becle SA de | Agro Capital vs. HUMANA INC |
| Grupo Bimbo vs. High Liner Foods | Grupo Bimbo vs. Lamb Weston Holdings | Grupo Bimbo vs. Kellanova | Grupo Bimbo vs. J J Snack |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |