Correlation Between Genomma Lab and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both Genomma Lab 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 Genomma Lab and Grupo Bimbo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genomma Lab Internacional and Grupo Bimbo SAB, you can compare the effects of market volatilities on Genomma Lab 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 Genomma Lab with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genomma Lab and Grupo Bimbo.
Diversification Opportunities for Genomma Lab and Grupo Bimbo
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genomma and Grupo is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Genomma Lab Internacional 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 Genomma Lab 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 Genomma Lab Internacional 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 Genomma Lab i.e., Genomma Lab and Grupo Bimbo go up and down completely randomly.
Pair Corralation between Genomma Lab and Grupo Bimbo
Assuming the 90 days trading horizon Genomma Lab Internacional is expected to generate 1.13 times more return on investment than Grupo Bimbo. However, Genomma Lab is 1.13 times more volatile than Grupo Bimbo SAB. It trades about 0.17 of its potential returns per unit of risk. Grupo Bimbo SAB is currently generating about -0.05 per unit of risk. If you would invest 1,752 in Genomma Lab Internacional on September 3, 2024 and sell it today you would earn a total of 922.00 from holding Genomma Lab Internacional or generate 52.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genomma Lab Internacional vs. Grupo Bimbo SAB
Performance |
| Timeline |
| Genomma Lab Internacional |
| Grupo Bimbo SAB |
Genomma Lab and Grupo Bimbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genomma Lab and Grupo Bimbo
The main advantage of trading using opposite Genomma Lab and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genomma Lab 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.| Genomma Lab vs. Gruma SAB de | Genomma Lab vs. Alfa SAB de | Genomma Lab vs. Kimberly Clark de Mxico | Genomma Lab vs. Grupo Mxico SAB |
| Grupo Bimbo vs. CEMEX SAB de | Grupo Bimbo vs. Fomento Econmico Mexicano | Grupo Bimbo vs. Alsea SAB de | Grupo Bimbo vs. Gruma SAB de |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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