Correlation Between Grupo Bimbo and Grupo Carso
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Grupo Carso 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 Carso 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 Carso SAB, you can compare the effects of market volatilities on Grupo Bimbo and Grupo Carso 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 Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Grupo Carso.
Diversification Opportunities for Grupo Bimbo and Grupo Carso
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and Grupo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso 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 Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Grupo Carso go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Grupo Carso
Assuming the 90 days horizon Grupo Bimbo SAB is expected to generate 1.3 times more return on investment than Grupo Carso. However, Grupo Bimbo is 1.3 times more volatile than Grupo Carso SAB. It trades about -0.05 of its potential returns per unit of risk. Grupo Carso SAB is currently generating about -0.21 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 | 95.45% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Grupo Carso SAB
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Grupo Carso SAB |
Grupo Bimbo and Grupo Carso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Grupo Carso
The main advantage of trading using opposite Grupo Bimbo and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Grupo Carso 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 Carso will offset losses from the drop in Grupo Carso'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 Carso vs. Grupo Bimbo SAB | Grupo Carso vs. Grupo Financiero Inbursa | Grupo Carso vs. Arca Continental SAB | Grupo Carso vs. Becle SA de |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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