Magazine Luiza Correlations

MGLU3 Stock

BRL 9.14 0.24 2.56%

The current 90-days correlation between Magazine Luiza SA and The Procter Gamble is -0.24 (i.e., Very good diversification). The correlation of Magazine Luiza is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Magazine Luiza Correlation With Market

Modest diversification

The correlation between Magazine Luiza SA and DJI is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Magazine Luiza SA and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Magazine Luiza could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Magazine Luiza when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Magazine Luiza - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Magazine Luiza SA to buy it.

Moving together with Magazine Stock

0.94	HGRE11	CSHG Real Estate	Pair Corr
0.8	XPBR31	Xp Inc	Pair Corr
0.95	RRRP3	3R Petroleum leo	Pair Corr
0.75	SBSP3	Companhia de Saneamento	Pair Corr
0.85	ELET6	Centrais Eltricas	Pair Corr

Moving against Magazine Stock

0.77	AURA33	Aura Minerals	Pair Corr
0.54	VALE3	Vale SA	Pair Corr
0.36	SUZB3	Suzano SA	Pair Corr

Related Correlations Analysis

	RSID3	CYRE3	BTLG11	PLPL3	HBTS5	PGCO34	ATMP3	BEWZ39	B1TI34
RSID3		0.48	0.85	-0.72	0.76	-0.01	-0.2	-0.7	0.39	RSID3
CYRE3	0.48		0.26	0.11	0.03	-0.12	-0.37	-0.15	-0.12	CYRE3
BTLG11	0.85	0.26		-0.82	0.86	-0.17	-0.01	-0.78	0.29	BTLG11
PLPL3	-0.72	0.11	-0.82		-0.84	0.21	-0.12	0.73	-0.38	PLPL3
HBTS5	0.76	0.03	0.86	-0.84		-0.08	0.09	-0.79	0.47	HBTS5
PGCO34	-0.01	-0.12	-0.17	0.21	-0.08		-0.37	0.01	0.62	PGCO34
ATMP3	-0.2	-0.37	-0.01	-0.12	0.09	-0.37		-0.17	-0.22	ATMP3
BEWZ39	-0.7	-0.15	-0.78	0.73	-0.79	0.01	-0.17		-0.55	BEWZ39
B1TI34	0.39	-0.12	0.29	-0.38	0.47	0.62	-0.22	-0.55		B1TI34
	RSID3	CYRE3	BTLG11	PLPL3	HBTS5	PGCO34	ATMP3	BEWZ39	B1TI34

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

HBTS5	+ 0.86	BTLG11
BTLG11	+ 0.85	RSID3
HBTS5	+ 0.76	RSID3
BEWZ39	+ 0.73	PLPL3
B1TI34	+ 0.62	PGCO34
CYRE3	+ 0.48	RSID3

High negative correlations

HBTS5	- 0.84	PLPL3
PLPL3	- 0.82	BTLG11
BEWZ39	- 0.79	HBTS5
BEWZ39	- 0.78	BTLG11
PLPL3	- 0.72	RSID3
BEWZ39	- 0.7	RSID3

Risk-Adjusted Indicators

There is a big difference between Magazine Stock performing well and Magazine Luiza Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Magazine Luiza's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
RSID3	2.11	(0.25)	0.00	(1.01)	0.00	0.00	5.05	(4.86)	12.37
CYRE3	1.34	(0.12)	0.00	(0.09)	0.00	0.00	3.05	(2.60)	9.53
BTLG11	0.51	(0.06)	0.00	0.57	0.00	0.00	1.20	(1.20)	4.73
PLPL3	1.75	0.11	0.02	0.49	1.83	(2.00)	3.98	(3.23)	8.69
HBTS5	1.72	(0.22)	0.00	0.34	0.00	0.00	5.18	(6.25)	20.67
PGCO34	1.04	0.15	0.03	(0.39)	1.12	(1.14)	2.21	(1.88)	7.52
ATMP3	2.38	0.02	0.00	0.06	0.00	0.00	6.38	(5.44)	21.44
BEWZ39	0.94	0.01	(0.05)	0.27	1.28	(0.97)	2.06	(2.07)	8.19
B1TI34	1.01	0.17	0.06	(0.81)	1.08	(1.21)	2.42	(1.94)	6.07

Be your own money manager

Our tools can tell you how much better you can do entering a position in Magazine Luiza without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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