Correlation Between Grupo Bimbo and Glucose Health
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Glucose Health 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 Glucose Health 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 Glucose Health, you can compare the effects of market volatilities on Grupo Bimbo and Glucose Health 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 Glucose Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Glucose Health.
Diversification Opportunities for Grupo Bimbo and Glucose Health
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and Glucose is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Glucose Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glucose Health 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 Glucose Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glucose Health has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Glucose Health go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Glucose Health
Assuming the 90 days horizon Grupo Bimbo SAB is expected to generate 0.48 times more return on investment than Glucose Health. However, Grupo Bimbo SAB is 2.1 times less risky than Glucose Health. It trades about -0.02 of its potential returns per unit of risk. Glucose Health is currently generating about -0.25 per unit of risk. If you would invest 1,069 in Grupo Bimbo SAB on November 8, 2024 and sell it today you would lose (18.00) from holding Grupo Bimbo SAB or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Glucose Health
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Glucose Health |
Grupo Bimbo and Glucose Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Glucose Health
The main advantage of trading using opposite Grupo Bimbo and Glucose Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Glucose Health 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 Glucose Health will offset losses from the drop in Glucose Health's long position.| Grupo Bimbo vs. Treehouse Foods | Grupo Bimbo vs. Lancaster Colony | Grupo Bimbo vs. Utz Brands | Grupo Bimbo vs. Lamb Weston Holdings |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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