Correlation Between Grupo Bimbo and JBS SA
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and JBS SA 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 JBS SA 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 JBS SA, you can compare the effects of market volatilities on Grupo Bimbo and JBS SA 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 JBS SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and JBS SA.
Diversification Opportunities for Grupo Bimbo and JBS SA
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and JBS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and JBS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBS SA 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 JBS SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBS SA has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and JBS SA go up and down completely randomly.
Pair Corralation between Grupo Bimbo and JBS SA
Assuming the 90 days horizon Grupo Bimbo SAB is expected to under-perform the JBS SA. In addition to that, Grupo Bimbo is 1.9 times more volatile than JBS SA. It trades about -0.02 of its total potential returns per unit of risk. JBS SA is currently generating about 0.09 per unit of volatility. If you would invest 637.00 in JBS SA on August 31, 2024 and sell it today you would earn a total of 594.00 from holding JBS SA or generate 93.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.94% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. JBS SA
Performance |
| Timeline |
| Grupo Bimbo SAB |
| JBS SA |
Grupo Bimbo and JBS SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and JBS SA
The main advantage of trading using opposite Grupo Bimbo and JBS SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, JBS SA 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 JBS SA will offset losses from the drop in JBS SA'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 |
| JBS SA vs. The A2 Milk | JBS SA vs. Altavoz Entertainment | JBS SA vs. Artisan Consumer Goods | JBS SA 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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