Correlation Between Grupo Bimbo and Becle SA

Can any of the company-specific risk be diversified away by investing in both Grupo Bimbo and Becle SA 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 Grupo Bimbo and Becle SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grupo Bimbo SAB and Becle SA de, you can compare the effects of market volatilities on Grupo Bimbo and Becle SA 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 Grupo Bimbo with a short position of Becle SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Bimbo and Becle SA.

Diversification Opportunities for Grupo Bimbo and Becle SA

0.1

Correlation Coefficient

Grupo Bimbo  Becle SA

Average diversification

The 3 months correlation between Grupo and Becle is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Bimbo SAB and Becle SA de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becle SA de and Grupo Bimbo 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 Grupo Bimbo SAB are associated (or correlated) with Becle SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Becle SA de has no effect on the direction of Grupo Bimbo i.e., Grupo Bimbo and Becle SA go up and down completely randomly.

Pair Corralation between Grupo Bimbo and Becle SA

Assuming the 90 days horizon Grupo Bimbo SAB is expected to generate 0.88 times more return on investment than Becle SA. However, Grupo Bimbo SAB is 1.14 times less risky than Becle SA. It trades about 0.04 of its potential returns per unit of risk. Becle SA de is currently generating about -0.07 per unit of risk. If you would invest  267.00  in Grupo Bimbo SAB on December 28, 2024 and sell it today you would earn a total of  16.00  from holding Grupo Bimbo SAB or generate 5.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Grupo Bimbo SAB  vs.  Becle SA de

Grupo Bimbo SAB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Bimbo SAB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Grupo Bimbo may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Becle SA de

Risk-Adjusted Performance

Very Weak

Over the last 90 days Becle SA de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Grupo Bimbo and Becle SA

The main advantage of trading using opposite Grupo Bimbo and Becle SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Bimbo position performs unexpectedly, Becle SA 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 Becle SA will offset losses from the drop in Becle SA's long position.

The idea behind Grupo Bimbo SAB and Becle SA de pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.