Correlation Between Gruma SAB and Grupo Comercial

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

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

Diversification Opportunities for Gruma SAB and Grupo Comercial

-0.85

Correlation Coefficient

Gruma SAB  Grupo Comercial

Pay attention - limited upside

The 3 months correlation between Gruma and Grupo is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Gruma SAB de and Grupo Comercial Chedraui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Comercial Chedraui and Gruma SAB 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 Gruma SAB de are associated (or correlated) with Grupo Comercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Comercial Chedraui has no effect on the direction of Gruma SAB i.e., Gruma SAB and Grupo Comercial go up and down completely randomly.

Pair Corralation between Gruma SAB and Grupo Comercial

Assuming the 90 days trading horizon Gruma SAB de is expected to under-perform the Grupo Comercial. But the stock apears to be less risky and, when comparing its historical volatility, Gruma SAB de is 1.26 times less risky than Grupo Comercial. The stock trades about -0.17 of its potential returns per unit of risk. The Grupo Comercial Chedraui is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  12,876  in Grupo Comercial Chedraui on April 25, 2025 and sell it today you would earn a total of  1,612  from holding Grupo Comercial Chedraui or generate 12.52% return on investment over 90 days.

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

Gruma SAB de  vs.  Grupo Comercial Chedraui

Gruma SAB de

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gruma SAB de 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 basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Grupo Comercial Chedraui

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Comercial Chedraui are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Grupo Comercial demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gruma SAB and Grupo Comercial

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

The idea behind Gruma SAB de and Grupo Comercial Chedraui 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.