Correlation Between Pinnacle Sherman and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both Pinnacle Sherman and Grupo Bimbo 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 Pinnacle Sherman and Grupo Bimbo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinnacle Sherman Multi Strategy and Grupo Bimbo SAB, you can compare the effects of market volatilities on Pinnacle Sherman and Grupo Bimbo 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 Pinnacle Sherman with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinnacle Sherman and Grupo Bimbo.
Diversification Opportunities for Pinnacle Sherman and Grupo Bimbo
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pinnacle and Grupo is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Pinnacle Sherman Multi Strateg and Grupo Bimbo SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Bimbo SAB and Pinnacle Sherman 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 Pinnacle Sherman Multi Strategy are associated (or correlated) with Grupo Bimbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Bimbo SAB has no effect on the direction of Pinnacle Sherman i.e., Pinnacle Sherman and Grupo Bimbo go up and down completely randomly.
Pair Corralation between Pinnacle Sherman and Grupo Bimbo
Assuming the 90 days horizon Pinnacle Sherman Multi Strategy is expected to generate 0.31 times more return on investment than Grupo Bimbo. However, Pinnacle Sherman Multi Strategy is 3.19 times less risky than Grupo Bimbo. It trades about 0.11 of its potential returns per unit of risk. Grupo Bimbo SAB is currently generating about -0.01 per unit of risk. If you would invest 1,300 in Pinnacle Sherman Multi Strategy on September 1, 2024 and sell it today you would earn a total of 169.00 from holding Pinnacle Sherman Multi Strategy or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinnacle Sherman Multi Strateg vs. Grupo Bimbo SAB
Performance |
| Timeline |
| Pinnacle Sherman Multi |
| Grupo Bimbo SAB |
Pinnacle Sherman and Grupo Bimbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinnacle Sherman and Grupo Bimbo
The main advantage of trading using opposite Pinnacle Sherman and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinnacle Sherman position performs unexpectedly, Grupo Bimbo 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 Grupo Bimbo will offset losses from the drop in Grupo Bimbo's long position.| Pinnacle Sherman vs. Rbc Emerging Markets | Pinnacle Sherman vs. Ab All Market | Pinnacle Sherman vs. Vanguard Developed Markets | Pinnacle Sherman vs. Calvert Developed Market |
| Grupo Bimbo vs. High Liner Foods | Grupo Bimbo vs. Lamb Weston Holdings | Grupo Bimbo vs. Kellanova | Grupo Bimbo vs. J J Snack |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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