Correlation Between Manufatura and Camil Alimentos
Can any of the company-specific risk be diversified away by investing in both Manufatura and Camil Alimentos 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 Manufatura and Camil Alimentos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manufatura de Brinquedos and Camil Alimentos SA, you can compare the effects of market volatilities on Manufatura and Camil Alimentos 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 Manufatura with a short position of Camil Alimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manufatura and Camil Alimentos.
Diversification Opportunities for Manufatura and Camil Alimentos
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manufatura and Camil is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Manufatura de Brinquedos and Camil Alimentos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camil Alimentos SA and Manufatura 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 Manufatura de Brinquedos are associated (or correlated) with Camil Alimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camil Alimentos SA has no effect on the direction of Manufatura i.e., Manufatura and Camil Alimentos go up and down completely randomly.
Pair Corralation between Manufatura and Camil Alimentos
Assuming the 90 days trading horizon Manufatura de Brinquedos is expected to under-perform the Camil Alimentos. In addition to that, Manufatura is 1.65 times more volatile than Camil Alimentos SA. It trades about -0.16 of its total potential returns per unit of risk. Camil Alimentos SA is currently generating about -0.15 per unit of volatility. If you would invest 799.00 in Camil Alimentos SA on August 29, 2024 and sell it today you would lose (40.00) from holding Camil Alimentos SA or give up 5.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manufatura de Brinquedos vs. Camil Alimentos SA
Performance |
| Timeline |
| Manufatura de Brinquedos |
| Camil Alimentos SA |
Manufatura and Camil Alimentos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manufatura and Camil Alimentos
The main advantage of trading using opposite Manufatura and Camil Alimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manufatura position performs unexpectedly, Camil Alimentos 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 Camil Alimentos will offset losses from the drop in Camil Alimentos' long position.| Manufatura vs. Lupatech SA | Manufatura vs. Rossi Residencial SA | Manufatura vs. Fras le SA | Manufatura vs. Clave Indices De |
| Camil Alimentos vs. Minerva SA | Camil Alimentos vs. Companhia Siderrgica Nacional | Camil Alimentos vs. Cyrela Brazil Realty |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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