Correlation Between Grupo Bimbo and Controladora Vuela
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Controladora Vuela 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 Controladora Vuela 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 Controladora Vuela Compaa, you can compare the effects of market volatilities on Grupo Bimbo and Controladora Vuela 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 Controladora Vuela. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Controladora Vuela.
Diversification Opportunities for Grupo Bimbo and Controladora Vuela
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and Controladora is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Controladora Vuela Compaa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Controladora Vuela Compaa 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 Controladora Vuela. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Controladora Vuela Compaa has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Controladora Vuela go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Controladora Vuela
Assuming the 90 days trading horizon Grupo Bimbo SAB is expected to under-perform the Controladora Vuela. In addition to that, Grupo Bimbo is 1.35 times more volatile than Controladora Vuela Compaa. It trades about -0.07 of its total potential returns per unit of risk. Controladora Vuela Compaa is currently generating about 0.37 per unit of volatility. If you would invest 1,415 in Controladora Vuela Compaa on August 26, 2024 and sell it today you would earn a total of 182.00 from holding Controladora Vuela Compaa or generate 12.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Controladora Vuela Compaa
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Controladora Vuela Compaa |
Grupo Bimbo and Controladora Vuela Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Controladora Vuela
The main advantage of trading using opposite Grupo Bimbo and Controladora Vuela positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Controladora Vuela 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 Controladora Vuela will offset losses from the drop in Controladora Vuela's long position.| Grupo Bimbo vs. Alfa SAB de | Grupo Bimbo vs. Grupo Financiero Banorte | Grupo Bimbo vs. Fomento Econmico Mexicano | Grupo Bimbo vs. Grupo Mxico SAB |
| Controladora Vuela vs. Grupo Financiero Inbursa | Controladora Vuela vs. Kimberly Clark de Mxico | Controladora Vuela vs. Grupo Televisa SAB | Controladora Vuela vs. Grupo Bimbo SAB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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