Correlation Between ATMA Participaes and Fundo Investec
Can any of the company-specific risk be diversified away by investing in both ATMA Participaes and Fundo Investec 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 Fundo Investec 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 Fundo Investec IMB, you can compare the effects of market volatilities on ATMA Participaes and Fundo Investec 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 Fundo Investec. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATMA Participaes and Fundo Investec.
Diversification Opportunities for ATMA Participaes and Fundo Investec
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between ATMA and Fundo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding ATMA Participaes SA and Fundo Investec IMB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundo Investec IMB 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 Fundo Investec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundo Investec IMB has no effect on the direction of ATMA Participaes i.e., ATMA Participaes and Fundo Investec go up and down completely randomly.
Pair Corralation between ATMA Participaes and Fundo Investec
Assuming the 90 days trading horizon ATMA Participaes SA is expected to under-perform the Fundo Investec. In addition to that, ATMA Participaes is 1.05 times more volatile than Fundo Investec IMB. It trades about -0.17 of its total potential returns per unit of risk. Fundo Investec IMB is currently generating about -0.06 per unit of volatility. If you would invest 5,500 in Fundo Investec IMB on September 2, 2024 and sell it today you would lose (131.00) from holding Fundo Investec IMB or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATMA Participaes SA vs. Fundo Investec IMB
Performance |
| Timeline |
| ATMA Participaes |
| Fundo Investec IMB |
ATMA Participaes and Fundo Investec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATMA Participaes and Fundo Investec
The main advantage of trading using opposite ATMA Participaes and Fundo Investec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATMA Participaes position performs unexpectedly, Fundo Investec 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 Fundo Investec will offset losses from the drop in Fundo Investec's long position.| ATMA Participaes vs. Triunfo Participaes e | ATMA Participaes vs. Allpark Empreendimentos Participaes | ATMA Participaes vs. Azevedo Travassos SA | ATMA Participaes vs. Azevedo Travassos SA |
| Fundo Investec vs. BTG Pactual Logstica | Fundo Investec vs. Plano Plano Desenvolvimento | Fundo Investec vs. Cable One | Fundo Investec vs. ATMA Participaes SA |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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