Correlation Between CCR SA and Positivo Tecnologia
Can any of the company-specific risk be diversified away by investing in both CCR SA and Positivo Tecnologia 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 CCR SA and Positivo Tecnologia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCR SA and Positivo Tecnologia SA, you can compare the effects of market volatilities on CCR SA and Positivo Tecnologia 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 CCR SA with a short position of Positivo Tecnologia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCR SA and Positivo Tecnologia.
Diversification Opportunities for CCR SA and Positivo Tecnologia
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CCR and Positivo is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CCR SA and Positivo Tecnologia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Positivo Tecnologia and CCR SA 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 CCR SA are associated (or correlated) with Positivo Tecnologia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Positivo Tecnologia has no effect on the direction of CCR SA i.e., CCR SA and Positivo Tecnologia go up and down completely randomly.
Pair Corralation between CCR SA and Positivo Tecnologia
Assuming the 90 days trading horizon CCR SA is expected to generate 0.43 times more return on investment than Positivo Tecnologia. However, CCR SA is 2.32 times less risky than Positivo Tecnologia. It trades about 0.0 of its potential returns per unit of risk. Positivo Tecnologia SA is currently generating about -0.17 per unit of risk. If you would invest 1,210 in CCR SA on August 27, 2024 and sell it today you would lose (2.00) from holding CCR SA or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCR SA vs. Positivo Tecnologia SA
Performance |
| Timeline |
| CCR SA |
| Positivo Tecnologia |
CCR SA and Positivo Tecnologia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCR SA and Positivo Tecnologia
The main advantage of trading using opposite CCR SA and Positivo Tecnologia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCR SA position performs unexpectedly, Positivo Tecnologia 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 Positivo Tecnologia will offset losses from the drop in Positivo Tecnologia's long position.| CCR SA vs. EcoRodovias Infraestrutura e | CCR SA vs. Companhia de Saneamento | CCR SA vs. Companhia Energtica de | CCR SA vs. Cosan SA |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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