Correlation Between Grupo Bimbo and Artisan Consumer
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Artisan Consumer 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 Artisan Consumer 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 Artisan Consumer Goods, you can compare the effects of market volatilities on Grupo Bimbo and Artisan Consumer 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 Artisan Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Artisan Consumer.
Diversification Opportunities for Grupo Bimbo and Artisan Consumer
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and Artisan is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Artisan Consumer Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Consumer Goods 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 Artisan Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Consumer Goods has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Artisan Consumer go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Artisan Consumer
Assuming the 90 days horizon Grupo Bimbo SAB is expected to under-perform the Artisan Consumer. But the pink sheet apears to be less risky and, when comparing its historical volatility, Grupo Bimbo SAB is 7.55 times less risky than Artisan Consumer. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Artisan Consumer Goods is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Artisan Consumer Goods on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Artisan Consumer Goods or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Artisan Consumer Goods
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Artisan Consumer Goods |
Grupo Bimbo and Artisan Consumer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Artisan Consumer
The main advantage of trading using opposite Grupo Bimbo and Artisan Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Artisan Consumer 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 Artisan Consumer will offset losses from the drop in Artisan Consumer's long position.The idea behind Grupo Bimbo SAB and Artisan Consumer Goods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Artisan Consumer vs. Ascendant Resources | Artisan Consumer vs. Cantex Mine Development | Artisan Consumer vs. Amarc Resources | Artisan Consumer vs. Sterling Metals Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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