Correlation Between Thrivent High and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both Thrivent High 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 Thrivent High and Grupo Bimbo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and Grupo Bimbo SAB, you can compare the effects of market volatilities on Thrivent High 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 Thrivent High with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Grupo Bimbo.
Diversification Opportunities for Thrivent High and Grupo Bimbo
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and Grupo is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield 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 Thrivent High 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 Thrivent High Yield 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 Thrivent High i.e., Thrivent High and Grupo Bimbo go up and down completely randomly.
Pair Corralation between Thrivent High and Grupo Bimbo
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.07 times more return on investment than Grupo Bimbo. However, Thrivent High Yield is 13.61 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 0.0 per unit of risk. If you would invest 363.00 in Thrivent High Yield on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Thrivent High Yield or generate 17.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.02% |
| Values | Daily Returns |
Thrivent High Yield vs. Grupo Bimbo SAB
Performance |
| Timeline |
| Thrivent High Yield |
| Grupo Bimbo SAB |
Thrivent High and Grupo Bimbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Grupo Bimbo
The main advantage of trading using opposite Thrivent High and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High 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.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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