Correlation Between Grupo Bimbo and Halma PLC
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Halma PLC 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 Halma PLC 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 Halma PLC, you can compare the effects of market volatilities on Grupo Bimbo and Halma PLC 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 Halma PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Halma PLC.
Diversification Opportunities for Grupo Bimbo and Halma PLC
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and Halma is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Halma PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halma PLC 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 Halma PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halma PLC has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Halma PLC go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Halma PLC
Assuming the 90 days horizon Grupo Bimbo SAB is expected to generate 1.74 times more return on investment than Halma PLC. However, Grupo Bimbo is 1.74 times more volatile than Halma PLC. It trades about 0.12 of its potential returns per unit of risk. Halma PLC is currently generating about 0.19 per unit of risk. If you would invest 287.00 in Grupo Bimbo SAB on September 4, 2024 and sell it today you would earn a total of 25.00 from holding Grupo Bimbo SAB or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Halma PLC
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Halma PLC |
Grupo Bimbo and Halma PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Halma PLC
The main advantage of trading using opposite Grupo Bimbo and Halma PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Halma PLC 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 Halma PLC will offset losses from the drop in Halma PLC's long position.| Grupo Bimbo vs. Kellanova | Grupo Bimbo vs. Lancaster Colony | Grupo Bimbo vs. The A2 Milk | Grupo Bimbo vs. Artisan Consumer Goods |
| Halma PLC vs. Grupo Bimbo SAB | Halma PLC vs. Grupo Financiero Inbursa | Halma PLC vs. Becle SA de | Halma PLC vs. HUMANA INC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |