Correlation Between Hrcules SA and Camil Alimentos
Can any of the company-specific risk be diversified away by investing in both Hrcules SA 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 Hrcules SA and Camil Alimentos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hrcules SA and Camil Alimentos SA, you can compare the effects of market volatilities on Hrcules SA 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 Hrcules SA with a short position of Camil Alimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hrcules SA and Camil Alimentos.
Diversification Opportunities for Hrcules SA and Camil Alimentos
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hrcules and Camil is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hrcules SA 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 Hrcules 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 Hrcules SA 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 Hrcules SA i.e., Hrcules SA and Camil Alimentos go up and down completely randomly.
Pair Corralation between Hrcules SA and Camil Alimentos
Assuming the 90 days trading horizon Hrcules SA is expected to generate 2.03 times more return on investment than Camil Alimentos. However, Hrcules SA is 2.03 times more volatile than Camil Alimentos SA. It trades about -0.05 of its potential returns per unit of risk. Camil Alimentos SA is currently generating about -0.28 per unit of risk. If you would invest 684.00 in Hrcules SA on September 1, 2024 and sell it today you would lose (36.00) from holding Hrcules SA or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hrcules SA vs. Camil Alimentos SA
Performance |
| Timeline |
| Hrcules SA |
| Camil Alimentos SA |
Hrcules SA and Camil Alimentos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hrcules SA and Camil Alimentos
The main advantage of trading using opposite Hrcules SA and Camil Alimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hrcules SA 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.| Hrcules SA vs. Inepar SA Indstria | Hrcules SA vs. Lupatech SA | Hrcules SA vs. Rossi Residencial SA | Hrcules SA vs. Fras le SA |
| Camil Alimentos vs. Companhia Siderrgica Nacional | Camil Alimentos vs. Cyrela Brazil Realty | Camil Alimentos vs. Fras le SA | Camil Alimentos vs. Energisa 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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