Correlation Between Grupo Bimbo and Becle SAB
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Becle SAB 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 Bimbo and Becle SAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Bimbo SAB and Becle SAB de, you can compare the effects of market volatilities on Grupo Bimbo and Becle SAB 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 Bimbo with a short position of Becle SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Becle SAB.
Diversification Opportunities for Grupo Bimbo and Becle SAB
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grupo and Becle is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Becle SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becle SAB de and Grupo Bimbo 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 Bimbo SAB are associated (or correlated) with Becle SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Becle SAB de has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Becle SAB go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Becle SAB
Assuming the 90 days trading horizon Grupo Bimbo SAB is expected to under-perform the Becle SAB. In addition to that, Grupo Bimbo is 1.19 times more volatile than Becle SAB de. It trades about -0.06 of its total potential returns per unit of risk. Becle SAB de is currently generating about -0.05 per unit of volatility. If you would invest 2,672 in Becle SAB de on September 2, 2024 and sell it today you would lose (53.00) from holding Becle SAB de or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Becle SAB de
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Becle SAB de |
Grupo Bimbo and Becle SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Becle SAB
The main advantage of trading using opposite Grupo Bimbo and Becle SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Becle SAB 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 Becle SAB will offset losses from the drop in Becle SAB's long position.| Grupo Bimbo vs. Genomma Lab Internacional | Grupo Bimbo vs. El Puerto de | Grupo Bimbo vs. Kimberly Clark de Mxico |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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