Correlation Between El Puerto and Grupo Bimbo
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By analyzing existing cross correlation between El Puerto de and Grupo Bimbo SAB, you can compare the effects of market volatilities on El Puerto 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 El Puerto with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Puerto and Grupo Bimbo.
Diversification Opportunities for El Puerto and Grupo Bimbo
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LIVEPOLC-1 and Grupo is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding El Puerto de 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 El Puerto 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 El Puerto de 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 El Puerto i.e., El Puerto and Grupo Bimbo go up and down completely randomly.
Pair Corralation between El Puerto and Grupo Bimbo
Assuming the 90 days trading horizon El Puerto de is expected to under-perform the Grupo Bimbo. But the stock apears to be less risky and, when comparing its historical volatility, El Puerto de is 1.18 times less risky than Grupo Bimbo. The stock trades about -0.08 of its potential returns per unit of risk. The Grupo Bimbo SAB is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 7,066 in Grupo Bimbo SAB on September 3, 2024 and sell it today you would lose (989.00) from holding Grupo Bimbo SAB or give up 14.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Puerto de vs. Grupo Bimbo SAB
Performance |
| Timeline |
| El Puerto de |
| Grupo Bimbo SAB |
El Puerto and Grupo Bimbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Puerto and Grupo Bimbo
The main advantage of trading using opposite El Puerto and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Puerto 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.| El Puerto vs. Genworth Financial | El Puerto vs. DXC Technology | El Puerto vs. The Bank of | El Puerto vs. McEwen Mining |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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