Correlation Between Grupo Bimbo and Vitasoy International
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Vitasoy International 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 Vitasoy International 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 Vitasoy International Holdings, you can compare the effects of market volatilities on Grupo Bimbo and Vitasoy International 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 Vitasoy International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Vitasoy International.
Diversification Opportunities for Grupo Bimbo and Vitasoy International
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Vitasoy is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Vitasoy International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitasoy International 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 Vitasoy International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitasoy International has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Vitasoy International go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Vitasoy International
Assuming the 90 days horizon Grupo Bimbo SAB is expected to generate 0.77 times more return on investment than Vitasoy International. However, Grupo Bimbo SAB is 1.29 times less risky than Vitasoy International. It trades about -0.03 of its potential returns per unit of risk. Vitasoy International Holdings is currently generating about -0.06 per unit of risk. If you would invest 1,770 in Grupo Bimbo SAB on September 13, 2024 and sell it today you would lose (620.00) from holding Grupo Bimbo SAB or give up 35.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.52% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Vitasoy International Holdings
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Vitasoy International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Bimbo and Vitasoy International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Vitasoy International
The main advantage of trading using opposite Grupo Bimbo and Vitasoy International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Vitasoy International 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 Vitasoy International will offset losses from the drop in Vitasoy International's long position.| Grupo Bimbo vs. BRF SA ADR | Grupo Bimbo vs. Pilgrims Pride Corp | Grupo Bimbo vs. John B Sanfilippo | Grupo Bimbo vs. Seneca Foods Corp |
| Vitasoy International vs. Premier Foods Plc | Vitasoy International vs. Torque Lifestyle Brands | Vitasoy International vs. Naturally Splendid Enterprises | Vitasoy International vs. Aryzta AG PK |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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