Correlation Between Utz Brands and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both Utz Brands 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 Utz Brands and Grupo Bimbo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Utz Brands and Grupo Bimbo SAB, you can compare the effects of market volatilities on Utz Brands 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 Utz Brands with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utz Brands and Grupo Bimbo.
Diversification Opportunities for Utz Brands and Grupo Bimbo
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Utz and Grupo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Utz Brands 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 Utz Brands 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 Utz Brands 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 Utz Brands i.e., Utz Brands and Grupo Bimbo go up and down completely randomly.
Pair Corralation between Utz Brands and Grupo Bimbo
Considering the 90-day investment horizon Utz Brands is expected to generate 0.74 times more return on investment than Grupo Bimbo. However, Utz Brands is 1.36 times less risky than Grupo Bimbo. It trades about 0.1 of its potential returns per unit of risk. Grupo Bimbo SAB is currently generating about -0.07 per unit of risk. If you would invest 1,621 in Utz Brands on August 31, 2024 and sell it today you would earn a total of 82.00 from holding Utz Brands or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Utz Brands vs. Grupo Bimbo SAB
Performance |
| Timeline |
| Utz Brands |
| Grupo Bimbo SAB |
Utz Brands and Grupo Bimbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Utz Brands and Grupo Bimbo
The main advantage of trading using opposite Utz Brands and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utz Brands 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.| Utz Brands vs. Post Holdings | Utz Brands vs. J J Snack | Utz Brands vs. The Hain Celestial | Utz Brands vs. Bellring Brands LLC |
| Grupo Bimbo vs. Treehouse Foods | Grupo Bimbo vs. Lancaster Colony | Grupo Bimbo vs. Utz Brands | Grupo Bimbo vs. Lamb Weston Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |