Correlation Between International Meal and Tupy SA
Can any of the company-specific risk be diversified away by investing in both International Meal and Tupy SA 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 International Meal and Tupy SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Meal and Tupy SA, you can compare the effects of market volatilities on International Meal and Tupy SA 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 International Meal with a short position of Tupy SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Meal and Tupy SA.
Diversification Opportunities for International Meal and Tupy SA
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and Tupy is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding International Meal and Tupy SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tupy SA and International Meal 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 International Meal are associated (or correlated) with Tupy SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tupy SA has no effect on the direction of International Meal i.e., International Meal and Tupy SA go up and down completely randomly.
Pair Corralation between International Meal and Tupy SA
Assuming the 90 days trading horizon International Meal is expected to generate 2.37 times more return on investment than Tupy SA. However, International Meal is 2.37 times more volatile than Tupy SA. It trades about 0.25 of its potential returns per unit of risk. Tupy SA is currently generating about -0.35 per unit of risk. If you would invest 96.00 in International Meal on January 5, 2025 and sell it today you would earn a total of 30.00 from holding International Meal or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
International Meal vs. Tupy SA
Performance |
| Timeline |
| International Meal |
| Tupy SA |
International Meal and Tupy SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Meal and Tupy SA
The main advantage of trading using opposite International Meal and Tupy SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Meal position performs unexpectedly, Tupy SA 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 Tupy SA will offset losses from the drop in Tupy SA's long position.| International Meal vs. Cogna Educao SA | International Meal vs. JHSF Participaes SA | International Meal vs. Tecnisa SA | International Meal vs. CVC Brasil Operadora |
| Tupy SA vs. MAHLE Metal Leve | Tupy SA vs. Iochpe Maxion SA | Tupy SA vs. Banco ABC Brasil | Tupy SA vs. Cia de Ferro |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |