Correlation Between Bit Origin and Grupo Bimbo
Can any of the company-specific risk be diversified away by investing in both Bit Origin 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 Bit Origin and Grupo Bimbo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and Grupo Bimbo SAB, you can compare the effects of market volatilities on Bit Origin 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 Bit Origin with a short position of Grupo Bimbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and Grupo Bimbo.
Diversification Opportunities for Bit Origin and Grupo Bimbo
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bit and Grupo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin 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 Bit Origin 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 Bit Origin 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 Bit Origin i.e., Bit Origin and Grupo Bimbo go up and down completely randomly.
Pair Corralation between Bit Origin and Grupo Bimbo
Given the investment horizon of 90 days Bit Origin is expected to under-perform the Grupo Bimbo. In addition to that, Bit Origin is 2.33 times more volatile than Grupo Bimbo SAB. It trades about -0.16 of its total potential returns per unit of risk. Grupo Bimbo SAB is currently generating about -0.13 per unit of volatility. If you would invest 1,418 in Grupo Bimbo SAB on September 26, 2024 and sell it today you would lose (311.00) from holding Grupo Bimbo SAB or give up 21.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 96.92% |
Values | Daily Returns |
Bit Origin vs. Grupo Bimbo SAB
Performance |
Timeline |
Bit Origin |
Grupo Bimbo SAB |
Bit Origin and Grupo Bimbo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bit Origin and Grupo Bimbo
The main advantage of trading using opposite Bit Origin and Grupo Bimbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin 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.Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
Grupo Bimbo vs. Qed Connect | Grupo Bimbo vs. Branded Legacy | Grupo Bimbo vs. Yuenglings Ice Cream | Grupo Bimbo vs. Bit Origin |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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