Correlation Between ATMA Participaes and Mondelez International
Can any of the company-specific risk be diversified away by investing in both ATMA Participaes and Mondelez 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 ATMA Participaes and Mondelez International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATMA Participaes SA and Mondelez International, you can compare the effects of market volatilities on ATMA Participaes and Mondelez 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 ATMA Participaes with a short position of Mondelez International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATMA Participaes and Mondelez International.
Diversification Opportunities for ATMA Participaes and Mondelez International
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ATMA and Mondelez is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ATMA Participaes SA and Mondelez International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mondelez International and ATMA Participaes 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 ATMA Participaes SA are associated (or correlated) with Mondelez International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mondelez International has no effect on the direction of ATMA Participaes i.e., ATMA Participaes and Mondelez International go up and down completely randomly.
Pair Corralation between ATMA Participaes and Mondelez International
Assuming the 90 days trading horizon ATMA Participaes SA is expected to under-perform the Mondelez International. In addition to that, ATMA Participaes is 2.38 times more volatile than Mondelez International. It trades about -0.09 of its total potential returns per unit of risk. Mondelez International is currently generating about 0.04 per unit of volatility. If you would invest 16,934 in Mondelez International on August 27, 2024 and sell it today you would earn a total of 1,758 from holding Mondelez International or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.19% |
| Values | Daily Returns |
ATMA Participaes SA vs. Mondelez International
Performance |
| Timeline |
| ATMA Participaes |
| Mondelez International |
ATMA Participaes and Mondelez International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATMA Participaes and Mondelez International
The main advantage of trading using opposite ATMA Participaes and Mondelez International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATMA Participaes position performs unexpectedly, Mondelez 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 Mondelez International will offset losses from the drop in Mondelez International's long position.| ATMA Participaes vs. Mliuz SA | ATMA Participaes vs. Lojas Quero Quero SA | ATMA Participaes vs. Grupo SBF SA | ATMA Participaes vs. Enjoei SA |
| Mondelez International vs. Hewlett Packard Co | Mondelez International vs. Zoom Video Communications | Mondelez International vs. BTG Pactual Logstica | Mondelez International vs. Plano Plano Desenvolvimento |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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