Correlation Between Gruma SAB and Kimberly Clark
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gruma SAB de and Kimberly Clark de Mxico, you can compare the effects of market volatilities on Gruma SAB and Kimberly Clark 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 Kimberly Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruma SAB and Kimberly Clark.
Diversification Opportunities for Gruma SAB and Kimberly Clark
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gruma and Kimberly is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gruma SAB de and Kimberly Clark de Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimberly Clark 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 Kimberly Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimberly Clark de has no effect on the direction of Gruma SAB i.e., Gruma SAB and Kimberly Clark go up and down completely randomly.
Pair Corralation between Gruma SAB and Kimberly Clark
Assuming the 90 days trading horizon Gruma SAB de is expected to under-perform the Kimberly Clark. In addition to that, Gruma SAB is 1.22 times more volatile than Kimberly Clark de Mxico. It trades about -0.03 of its total potential returns per unit of risk. Kimberly Clark de Mxico is currently generating about 0.08 per unit of volatility. If you would invest 2,795 in Kimberly Clark de Mxico on October 26, 2024 and sell it today you would earn a total of 161.00 from holding Kimberly Clark de Mxico or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruma SAB de vs. Kimberly Clark de Mxico
Performance |
| Timeline |
| Gruma SAB de |
| Kimberly Clark de |
Gruma SAB and Kimberly Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruma SAB and Kimberly Clark
The main advantage of trading using opposite Gruma SAB and Kimberly Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruma SAB position performs unexpectedly, Kimberly Clark 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 Kimberly Clark will offset losses from the drop in Kimberly Clark'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 |
| Kimberly Clark vs. Gruma SAB de | Kimberly Clark vs. Alfa SAB de | Kimberly Clark vs. Grupo Financiero Inbursa | Kimberly Clark 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |