Correlation Between Grupo Bimbo and Very Good
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Very Good 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 Very Good 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 The Very Good, you can compare the effects of market volatilities on Grupo Bimbo and Very Good 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 Very Good. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Very Good.
Diversification Opportunities for Grupo Bimbo and Very Good
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Very is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and The Very Good in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Very Good 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 Very Good. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Very Good has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Very Good go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Very Good
If you would invest 1.60 in The Very Good on September 12, 2024 and sell it today you would earn a total of 0.00 from holding The Very Good or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. The Very Good
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Very Good |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Bimbo and Very Good Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Very Good
The main advantage of trading using opposite Grupo Bimbo and Very Good positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Very Good 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 Very Good will offset losses from the drop in Very Good's long position.| Grupo Bimbo vs. Treehouse Foods | Grupo Bimbo vs. Lancaster Colony | Grupo Bimbo vs. Utz Brands | Grupo Bimbo vs. Lamb Weston Holdings |
| Very Good vs. Sensient Technologies | Very Good vs. CF Industries Holdings | Very Good vs. Sealed Air | Very Good vs. Mativ Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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