Correlation Between Sekisui Chemical and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both Sekisui Chemical 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 Sekisui Chemical and Grupo Bimbo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekisui Chemical Co and Grupo Bimbo SAB, you can compare the effects of market volatilities on Sekisui Chemical 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 Sekisui Chemical with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekisui Chemical and Grupo Bimbo.
Diversification Opportunities for Sekisui Chemical and Grupo Bimbo
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sekisui and Grupo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sekisui Chemical Co 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 Sekisui Chemical 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 Sekisui Chemical Co 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 Sekisui Chemical i.e., Sekisui Chemical and Grupo Bimbo go up and down completely randomly.
Pair Corralation between Sekisui Chemical and Grupo Bimbo
If you would invest 287.00 in Grupo Bimbo SAB on September 4, 2024 and sell it today you would earn a total of 25.00 from holding Grupo Bimbo SAB or generate 8.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sekisui Chemical Co vs. Grupo Bimbo SAB
Performance |
Timeline |
Sekisui Chemical |
Grupo Bimbo SAB |
Sekisui Chemical and Grupo Bimbo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sekisui Chemical and Grupo Bimbo
The main advantage of trading using opposite Sekisui Chemical and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekisui Chemical 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.Sekisui Chemical vs. Grupo Bimbo SAB | Sekisui Chemical vs. Grupo Financiero Inbursa | Sekisui Chemical vs. Becle SA de | Sekisui Chemical vs. HUMANA INC |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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