Correlation Between Industrias Bachoco and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Industrias Bachoco and Cresud SACIF 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 Industrias Bachoco and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrias Bachoco SAB and Cresud SACIF y, you can compare the effects of market volatilities on Industrias Bachoco and Cresud SACIF 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 Industrias Bachoco with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrias Bachoco and Cresud SACIF.
Diversification Opportunities for Industrias Bachoco and Cresud SACIF
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrias and Cresud is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Industrias Bachoco SAB and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and Industrias Bachoco 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 Industrias Bachoco SAB are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Industrias Bachoco i.e., Industrias Bachoco and Cresud SACIF go up and down completely randomly.
Pair Corralation between Industrias Bachoco and Cresud SACIF
If you would invest 875.00 in Cresud SACIF y on January 25, 2024 and sell it today you would earn a total of 76.00 from holding Cresud SACIF y or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Industrias Bachoco SAB vs. Cresud SACIF y
Performance |
| Timeline |
| Industrias Bachoco SAB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cresud SACIF y |
Industrias Bachoco and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrias Bachoco and Cresud SACIF
The main advantage of trading using opposite Industrias Bachoco and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrias Bachoco position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.| Industrias Bachoco vs. Fresh Del Monte | Industrias Bachoco vs. Alico Inc | Industrias Bachoco vs. SW Seed Company | Industrias Bachoco vs. Adecoagro SA |
| Cresud SACIF vs. Steel Partners Holdings | Cresud SACIF vs. Compass Diversified | Cresud SACIF vs. Brookfield Business Partners | Cresud SACIF vs. Matthews International |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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