Correlation Between Grupo Bimbo and Premier Foods
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Premier Foods 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 Premier Foods 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 Premier Foods Plc, you can compare the effects of market volatilities on Grupo Bimbo and Premier Foods 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 Premier Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Premier Foods.
Diversification Opportunities for Grupo Bimbo and Premier Foods
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Premier is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Premier Foods Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Foods Plc 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 Premier Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Foods Plc has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Premier Foods go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Premier Foods
If you would invest 1,226 in Premier Foods Plc on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Premier Foods Plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Premier Foods Plc
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Premier Foods Plc |
Grupo Bimbo and Premier Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Premier Foods
The main advantage of trading using opposite Grupo Bimbo and Premier Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Premier Foods 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 Premier Foods will offset losses from the drop in Premier Foods' long position.| Grupo Bimbo vs. Kellanova | Grupo Bimbo vs. Lancaster Colony | Grupo Bimbo vs. The A2 Milk | Grupo Bimbo vs. Artisan Consumer Goods |
| Premier Foods vs. Torque Lifestyle Brands | Premier Foods vs. Naturally Splendid Enterprises | Premier Foods vs. Aryzta AG PK | Premier Foods vs. The A2 Milk |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |