Correlation Between Grupo Bimbo and Calbee
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Calbee 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 Calbee 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 Calbee Inc, you can compare the effects of market volatilities on Grupo Bimbo and Calbee 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 Calbee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Calbee.
Diversification Opportunities for Grupo Bimbo and Calbee
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and Calbee is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Calbee Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calbee Inc 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 Calbee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calbee Inc has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Calbee go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Calbee
Assuming the 90 days horizon Grupo Bimbo is expected to generate 1.33 times less return on investment than Calbee. In addition to that, Grupo Bimbo is 1.45 times more volatile than Calbee Inc. It trades about 0.01 of its total potential returns per unit of risk. Calbee Inc is currently generating about 0.01 per unit of volatility. If you would invest 529.00 in Calbee Inc on August 26, 2024 and sell it today you would lose (36.00) from holding Calbee Inc or give up 6.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.09% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Calbee Inc
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Calbee Inc |
Grupo Bimbo and Calbee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Calbee
The main advantage of trading using opposite Grupo Bimbo and Calbee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Calbee 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 Calbee will offset losses from the drop in Calbee'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 |
| Calbee vs. Artisan Consumer Goods | Calbee vs. Aryzta AG PK | Calbee vs. The A2 Milk | Calbee vs. BioAdaptives |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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