Correlation Between Grupo Bimbo and Marubeni
Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Marubeni 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 Marubeni 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 Marubeni, you can compare the effects of market volatilities on Grupo Bimbo and Marubeni 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 Marubeni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Marubeni.
Diversification Opportunities for Grupo Bimbo and Marubeni
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and Marubeni is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Marubeni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marubeni 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 Marubeni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marubeni has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Marubeni go up and down completely randomly.
Pair Corralation between Grupo Bimbo and Marubeni
Assuming the 90 days horizon Grupo Bimbo SAB is expected to generate 1.01 times more return on investment than Marubeni. However, Grupo Bimbo is 1.01 times more volatile than Marubeni. It trades about 0.12 of its potential returns per unit of risk. Marubeni is currently generating about 0.11 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Bimbo SAB vs. Marubeni
Performance |
| Timeline |
| Grupo Bimbo SAB |
| Marubeni |
Grupo Bimbo and Marubeni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Bimbo and Marubeni
The main advantage of trading using opposite Grupo Bimbo and Marubeni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Marubeni 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 Marubeni will offset losses from the drop in Marubeni's long position.| Grupo Bimbo vs. Kellanova | Grupo Bimbo vs. Lancaster Colony | Grupo Bimbo vs. The A2 Milk | Grupo Bimbo vs. Artisan Consumer Goods |
| Marubeni vs. Grupo Bimbo SAB | Marubeni vs. Grupo Financiero Inbursa | Marubeni vs. Becle SA de | Marubeni 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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