Correlation Between Grupo Bimbo and Tingyi Holding
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Tingyi Holding 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 Tingyi Holding 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 Tingyi Holding Corp, you can compare the effects of market volatilities on Grupo Bimbo and Tingyi Holding 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 Tingyi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Tingyi Holding.
Diversification Opportunities for Grupo Bimbo and Tingyi Holding
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and Tingyi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Tingyi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingyi Holding Corp 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 Tingyi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingyi Holding Corp has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Tingyi Holding go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Tingyi Holding
If you would invest 157.00 in Tingyi Holding Corp on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Tingyi Holding Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Tingyi Holding Corp
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Bimbo and Tingyi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Tingyi Holding
The main advantage of trading using opposite Grupo Bimbo and Tingyi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Tingyi Holding 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 Tingyi Holding will offset losses from the drop in Tingyi Holding'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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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