Correlation Between Grupo Bimbo and Koios Beverage
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Koios Beverage 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 Koios Beverage 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 Koios Beverage Corp, you can compare the effects of market volatilities on Grupo Bimbo and Koios Beverage 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 Koios Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Koios Beverage.
Diversification Opportunities for Grupo Bimbo and Koios Beverage
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and Koios is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Koios Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koios Beverage 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 Koios Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koios Beverage Corp has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Koios Beverage go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Koios Beverage
Assuming the 90 days horizon Grupo Bimbo SAB is expected to under-perform the Koios Beverage. But the pink sheet apears to be less risky and, when comparing its historical volatility, Grupo Bimbo SAB is 11.66 times less risky than Koios Beverage. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Koios Beverage Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 139.00 in Koios Beverage Corp on August 30, 2024 and sell it today you would lose (137.60) from holding Koios Beverage Corp or give up 98.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.02% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Koios Beverage Corp
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Koios Beverage Corp |
Grupo Bimbo and Koios Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Koios Beverage
The main advantage of trading using opposite Grupo Bimbo and Koios Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Koios Beverage 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 Koios Beverage will offset losses from the drop in Koios Beverage's long position.| Grupo Bimbo vs. Darling Ingredients | Grupo Bimbo vs. Paranovus Entertainment Technology | Grupo Bimbo vs. ABIVAX Socit Anonyme | Grupo Bimbo vs. Pinnacle Sherman Multi Strategy |
| Koios Beverage vs. Darling Ingredients | Koios Beverage vs. Paranovus Entertainment Technology | Koios Beverage vs. ABIVAX Socit Anonyme | Koios Beverage vs. Pinnacle Sherman Multi Strategy |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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