Correlation Between Grupo Mateus and Companhia Brasileira
Can any of the company-specific risk be diversified away by investing in both Grupo Mateus and Companhia Brasileira 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 Grupo Mateus and Companhia Brasileira into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Mateus SA and Companhia Brasileira de, you can compare the effects of market volatilities on Grupo Mateus and Companhia Brasileira 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 Grupo Mateus with a short position of Companhia Brasileira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Mateus and Companhia Brasileira.
Diversification Opportunities for Grupo Mateus and Companhia Brasileira
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Companhia is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Mateus SA and Companhia Brasileira de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Companhia Brasileira and Grupo Mateus 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 Grupo Mateus SA are associated (or correlated) with Companhia Brasileira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Companhia Brasileira has no effect on the direction of Grupo Mateus i.e., Grupo Mateus and Companhia Brasileira go up and down completely randomly.
Pair Corralation between Grupo Mateus and Companhia Brasileira
Assuming the 90 days trading horizon Grupo Mateus SA is expected to generate 0.61 times more return on investment than Companhia Brasileira. However, Grupo Mateus SA is 1.65 times less risky than Companhia Brasileira. It trades about 0.34 of its potential returns per unit of risk. Companhia Brasileira de is currently generating about -0.11 per unit of risk. If you would invest 604.00 in Grupo Mateus SA on November 9, 2024 and sell it today you would earn a total of 75.00 from holding Grupo Mateus SA or generate 12.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Mateus SA vs. Companhia Brasileira de
Performance |
| Timeline |
| Grupo Mateus SA |
| Companhia Brasileira |
Grupo Mateus and Companhia Brasileira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Mateus and Companhia Brasileira
The main advantage of trading using opposite Grupo Mateus and Companhia Brasileira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Mateus position performs unexpectedly, Companhia Brasileira 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 Companhia Brasileira will offset losses from the drop in Companhia Brasileira's long position.| Grupo Mateus vs. Pet Center Comrcio | Grupo Mateus vs. Natura Co Holding | Grupo Mateus vs. Rede DOr So | Grupo Mateus vs. Lojas Quero Quero SA |
| Companhia Brasileira vs. Atacado SA | Companhia Brasileira vs. Natura Co Holding | Companhia Brasileira vs. Lojas Renner SA | Companhia Brasileira vs. Marfrig Global Foods |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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