Correlation Between BBB Foods and Webus International

Can any of the company-specific risk be diversified away by investing in both BBB Foods and Webus International 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 BBB Foods and Webus International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BBB Foods and Webus International Limited, you can compare the effects of market volatilities on BBB Foods and Webus International 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 BBB Foods with a short position of Webus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBB Foods and Webus International.

Diversification Opportunities for BBB Foods and Webus International

0.7

Correlation Coefficient

BBB Foods  Webus International

Poor diversification

The 3 months correlation between BBB and Webus is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding BBB Foods and Webus International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webus International and BBB Foods 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 BBB Foods are associated (or correlated) with Webus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webus International has no effect on the direction of BBB Foods i.e., BBB Foods and Webus International go up and down completely randomly.

Pair Corralation between BBB Foods and Webus International

Given the investment horizon of 90 days BBB Foods is expected to generate 0.21 times more return on investment than Webus International. However, BBB Foods is 4.79 times less risky than Webus International. It trades about -0.12 of its potential returns per unit of risk. Webus International Limited is currently generating about -0.07 per unit of risk. If you would invest  3,090  in BBB Foods on May 5, 2025 and sell it today you would lose (540.00) from holding BBB Foods or give up 17.48% of portfolio value over 90 days.

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

BBB Foods  vs.  Webus International Limited

BBB Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days BBB Foods has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Webus International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Webus International Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with BBB Foods and Webus International

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

The idea behind BBB Foods and Webus International Limited 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.