Correlation Between Gruma SAB and Alsea SAB
Can any of the company-specific risk be diversified away by investing in both Gruma SAB and Alsea SAB 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 Gruma SAB and Alsea SAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruma SAB de and Alsea SAB de, you can compare the effects of market volatilities on Gruma SAB and Alsea SAB 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 Gruma SAB with a short position of Alsea SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruma SAB and Alsea SAB.
Diversification Opportunities for Gruma SAB and Alsea SAB
Very weak diversification
The 3 months correlation between Gruma and Alsea is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gruma SAB de and Alsea SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alsea SAB de and Gruma SAB 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 Gruma SAB de are associated (or correlated) with Alsea SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alsea SAB de has no effect on the direction of Gruma SAB i.e., Gruma SAB and Alsea SAB go up and down completely randomly.
Pair Corralation between Gruma SAB and Alsea SAB
Assuming the 90 days trading horizon Gruma SAB de is expected to generate 1.21 times more return on investment than Alsea SAB. However, Gruma SAB is 1.21 times more volatile than Alsea SAB de. It trades about 0.0 of its potential returns per unit of risk. Alsea SAB de is currently generating about -0.29 per unit of risk. If you would invest 34,617 in Gruma SAB de on September 2, 2024 and sell it today you would lose (121.00) from holding Gruma SAB de or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruma SAB de vs. Alsea SAB de
Performance |
| Timeline |
| Gruma SAB de |
| Alsea SAB de |
Gruma SAB and Alsea SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruma SAB and Alsea SAB
The main advantage of trading using opposite Gruma SAB and Alsea SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruma SAB position performs unexpectedly, Alsea SAB 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 Alsea SAB will offset losses from the drop in Alsea SAB's long position.| Gruma SAB vs. Alfa SAB de | Gruma SAB vs. Grupo Financiero Banorte | Gruma SAB vs. Fomento Econmico Mexicano | Gruma SAB vs. Grupo Mxico SAB |
| Alsea SAB vs. CEMEX SAB de | Alsea SAB vs. Grupo Financiero Banorte | Alsea SAB vs. Grupo Bimbo SAB | Alsea SAB vs. Fomento Econmico Mexicano |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |