Correlation Between Lupatech and Marcopolo
Can any of the company-specific risk be diversified away by investing in both Lupatech and Marcopolo 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 Lupatech and Marcopolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lupatech SA and Marcopolo SA, you can compare the effects of market volatilities on Lupatech and Marcopolo 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 Lupatech with a short position of Marcopolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lupatech and Marcopolo.
Diversification Opportunities for Lupatech and Marcopolo
Excellent diversification
The 3 months correlation between Lupatech and Marcopolo is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lupatech SA and Marcopolo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcopolo SA and Lupatech 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 Lupatech SA are associated (or correlated) with Marcopolo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcopolo SA has no effect on the direction of Lupatech i.e., Lupatech and Marcopolo go up and down completely randomly.
Pair Corralation between Lupatech and Marcopolo
Assuming the 90 days trading horizon Lupatech SA is expected to under-perform the Marcopolo. In addition to that, Lupatech is 1.37 times more volatile than Marcopolo SA. It trades about -0.02 of its total potential returns per unit of risk. Marcopolo SA is currently generating about 0.33 per unit of volatility. If you would invest 843.00 in Marcopolo SA on August 28, 2024 and sell it today you would earn a total of 116.00 from holding Marcopolo SA or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lupatech SA vs. Marcopolo SA
Performance |
| Timeline |
| Lupatech SA |
| Marcopolo SA |
Lupatech and Marcopolo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lupatech and Marcopolo
The main advantage of trading using opposite Lupatech and Marcopolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lupatech position performs unexpectedly, Marcopolo 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 Marcopolo will offset losses from the drop in Marcopolo's long position.| Lupatech vs. PDG Realty SA | Lupatech vs. Positivo Tecnologia SA | Lupatech vs. Rossi Residencial SA | Lupatech vs. Eternit SA |
| Marcopolo vs. Fras le SA | Marcopolo vs. Indstrias Romi SA | Marcopolo vs. Clave Indices De | Marcopolo vs. BTG Pactual Logstica |
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..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |