Correlation Between Mytilineos Holdings and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both Mytilineos Holdings 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 Mytilineos Holdings and Grupo Bimbo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mytilineos Holdings SA and Grupo Bimbo SAB, you can compare the effects of market volatilities on Mytilineos Holdings 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 Mytilineos Holdings with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mytilineos Holdings and Grupo Bimbo.
Diversification Opportunities for Mytilineos Holdings and Grupo Bimbo
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mytilineos and Grupo is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mytilineos Holdings SA 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 Mytilineos Holdings 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 Mytilineos Holdings SA 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 Mytilineos Holdings i.e., Mytilineos Holdings and Grupo Bimbo go up and down completely randomly.
Pair Corralation between Mytilineos Holdings and Grupo Bimbo
Assuming the 90 days horizon Mytilineos Holdings SA is expected to generate 0.86 times more return on investment than Grupo Bimbo. However, Mytilineos Holdings SA is 1.17 times less risky than Grupo Bimbo. It trades about -0.04 of its potential returns per unit of risk. Grupo Bimbo SAB is currently generating about -0.24 per unit of risk. If you would invest 3,600 in Mytilineos Holdings SA on September 13, 2024 and sell it today you would lose (92.00) from holding Mytilineos Holdings SA or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mytilineos Holdings SA vs. Grupo Bimbo SAB
Performance |
| Timeline |
| Mytilineos Holdings |
| Grupo Bimbo SAB |
Mytilineos Holdings and Grupo Bimbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mytilineos Holdings and Grupo Bimbo
The main advantage of trading using opposite Mytilineos Holdings and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mytilineos Holdings 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.| Mytilineos Holdings vs. Honeywell International | Mytilineos Holdings vs. MDU Resources Group | Mytilineos Holdings vs. Compass Diversified Holdings | Mytilineos Holdings vs. Valmont Industries |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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