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Correlation Between Industrias Bachoco and Bunge

Analyzing existing cross correlation between Industrias Bachoco S A B De C and Bunge Limited. You can compare the effects of market volatilities on Industrias Bachoco and Bunge 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 Bunge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrias Bachoco and Bunge.

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Diversification Opportunities for Industrias Bachoco and Bunge

Industrias Bachoco S A B De C diversification synergy
0.75
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Poor diversification

The 3 months correlation between Industrias and Bunge is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Industrias Bachoco S A B De C and Bunge Limited in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bunge Limited 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 S A B De C are associated (or correlated) with Bunge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bunge Limited has no effect on the direction of Industrias Bachoco i.e. Industrias Bachoco and Bunge go up and down completely randomly.

Pair Corralation between Industrias Bachoco and Bunge

Considering 30-days investment horizon, Industrias Bachoco S A B De C is expected to under-perform the Bunge. In addition to that, Industrias Bachoco is 1.41 times more volatile than Bunge Limited. It trades about -0.13 of its total potential returns per unit of risk. Bunge Limited is currently generating about -0.09 per unit of volatility. If you would invest  5,338  in Bunge Limited on January 28, 2020 and sell it today you would lose (417.00)  from holding Bunge Limited or give up 7.81% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.39%
ValuesDaily Returns

Industrias Bachoco S A B De C  vs.  Bunge Limited

 Performance (%) 
    
  Timeline 
Industrias Bachoco 
00

Risk-Adjusted Performance

Over the last 30 days Industrias Bachoco S A B De C 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 basic indicators remain somewhat strong which may send shares a bit higher in March 2020. The current disturbance may also be a sign of long term up-swing for the company investors.
Bunge Limited 
00

Risk-Adjusted Performance

Over the last 30 days Bunge Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest sluggish performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Industrias Bachoco and Bunge Volatility Contrast

 Predicted Return Density 
    
  Returns 
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