Correlation Between Aryzta AG and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both Aryzta AG 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 Aryzta AG and Grupo Bimbo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aryzta AG PK and Grupo Bimbo SAB, you can compare the effects of market volatilities on Aryzta AG 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 Aryzta AG with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aryzta AG and Grupo Bimbo.
Diversification Opportunities for Aryzta AG and Grupo Bimbo
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aryzta and Grupo is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aryzta AG PK 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 Aryzta AG 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 Aryzta AG PK 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 Aryzta AG i.e., Aryzta AG and Grupo Bimbo go up and down completely randomly.
Pair Corralation between Aryzta AG and Grupo Bimbo
Assuming the 90 days horizon Aryzta AG PK is expected to generate 1.12 times more return on investment than Grupo Bimbo. However, Aryzta AG is 1.12 times more volatile than Grupo Bimbo SAB. It trades about -0.01 of its potential returns per unit of risk. Grupo Bimbo SAB is currently generating about -0.07 per unit of risk. If you would invest 99.00 in Aryzta AG PK on September 12, 2024 and sell it today you would lose (6.00) from holding Aryzta AG PK or give up 6.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
Aryzta AG PK vs. Grupo Bimbo SAB
Performance |
| Timeline |
| Aryzta AG PK |
| Grupo Bimbo SAB |
Aryzta AG and Grupo Bimbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aryzta AG and Grupo Bimbo
The main advantage of trading using opposite Aryzta AG and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aryzta AG 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.| Aryzta AG vs. BRF SA ADR | Aryzta AG vs. Pilgrims Pride Corp | Aryzta AG vs. John B Sanfilippo | Aryzta AG vs. Seneca Foods Corp |
| Grupo Bimbo vs. Treehouse Foods | Grupo Bimbo vs. Lancaster Colony | Grupo Bimbo vs. Utz Brands | Grupo Bimbo vs. Lamb Weston Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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