Correlation Between Grupo Bimbo and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Grupo Bimbo 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 Grupo Bimbo 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 Grupo Bimbo SAB, you can compare the effects of market volatilities on Grupo Bimbo and Grupo Bimbo 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 Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Grupo Bimbo.
Diversification Opportunities for Grupo Bimbo and Grupo Bimbo
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and Grupo is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Grupo Bimbo SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Bimbo SAB 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 Grupo Bimbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Bimbo SAB has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Grupo Bimbo go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Grupo Bimbo
Assuming the 90 days horizon Grupo Bimbo SAB is expected to generate 1.24 times more return on investment than Grupo Bimbo. However, Grupo Bimbo is 1.24 times more volatile than Grupo Bimbo SAB. It trades about -0.05 of its potential returns per unit of risk. Grupo Bimbo SAB is currently generating about -0.08 per unit of risk. If you would invest 310.00 in Grupo Bimbo SAB on September 1, 2024 and sell it today you would lose (18.00) from holding Grupo Bimbo SAB or give up 5.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Grupo Bimbo SAB
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Grupo Bimbo SAB |
Grupo Bimbo and Grupo Bimbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Grupo Bimbo
The main advantage of trading using opposite Grupo Bimbo and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Grupo Bimbo 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 Grupo Bimbo will offset losses from the drop in Grupo Bimbo's long position.| Grupo Bimbo vs. High Liner Foods | Grupo Bimbo vs. Lamb Weston Holdings | Grupo Bimbo vs. Kellanova | Grupo Bimbo vs. J J Snack |
| Grupo Bimbo vs. The A2 Milk | Grupo Bimbo vs. Altavoz Entertainment | Grupo Bimbo vs. Artisan Consumer Goods | Grupo Bimbo vs. General Mills |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |