Correlation Between A2 Milk and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both A2 Milk 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 A2 Milk and Grupo Bimbo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The A2 Milk and Grupo Bimbo SAB, you can compare the effects of market volatilities on A2 Milk 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 A2 Milk with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of A2 Milk and Grupo Bimbo.
Diversification Opportunities for A2 Milk and Grupo Bimbo
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ACOPY and Grupo is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding The A2 Milk 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 A2 Milk 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 The A2 Milk 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 A2 Milk i.e., A2 Milk and Grupo Bimbo go up and down completely randomly.
Pair Corralation between A2 Milk and Grupo Bimbo
Assuming the 90 days horizon The A2 Milk is expected to generate 0.86 times more return on investment than Grupo Bimbo. However, The A2 Milk is 1.16 times less risky than Grupo Bimbo. It trades about 0.04 of its potential returns per unit of risk. Grupo Bimbo SAB is currently generating about -0.04 per unit of risk. If you would invest 266.00 in The A2 Milk on September 4, 2024 and sell it today you would earn a total of 67.00 from holding The A2 Milk or generate 25.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.38% |
| Values | Daily Returns |
The A2 Milk vs. Grupo Bimbo SAB
Performance |
| Timeline |
| A2 Milk |
| Grupo Bimbo SAB |
A2 Milk and Grupo Bimbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A2 Milk and Grupo Bimbo
The main advantage of trading using opposite A2 Milk and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A2 Milk 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.| A2 Milk vs. Forafric Global PLC | A2 Milk vs. Forafric Global PLC | A2 Milk vs. GrainCorp Limited | A2 Milk vs. Australian Agricultural |
| Grupo Bimbo vs. Kellanova | Grupo Bimbo vs. Lancaster Colony | Grupo Bimbo vs. The A2 Milk | Grupo Bimbo vs. Artisan Consumer Goods |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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