Correlation Between Multilaser Industrial and Banco Pine
Can any of the company-specific risk be diversified away by investing in both Multilaser Industrial and Banco Pine 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 Multilaser Industrial and Banco Pine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multilaser Industrial SA and Banco Pine SA, you can compare the effects of market volatilities on Multilaser Industrial and Banco Pine 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 Multilaser Industrial with a short position of Banco Pine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multilaser Industrial and Banco Pine.
Diversification Opportunities for Multilaser Industrial and Banco Pine
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Multilaser and Banco is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Multilaser Industrial SA and Banco Pine SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Pine SA and Multilaser Industrial 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 Multilaser Industrial SA are associated (or correlated) with Banco Pine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Pine SA has no effect on the direction of Multilaser Industrial i.e., Multilaser Industrial and Banco Pine go up and down completely randomly.
Pair Corralation between Multilaser Industrial and Banco Pine
Assuming the 90 days trading horizon Multilaser Industrial SA is expected to under-perform the Banco Pine. In addition to that, Multilaser Industrial is 1.31 times more volatile than Banco Pine SA. It trades about -0.04 of its total potential returns per unit of risk. Banco Pine SA is currently generating about 0.05 per unit of volatility. If you would invest 341.00 in Banco Pine SA on September 12, 2024 and sell it today you would earn a total of 106.00 from holding Banco Pine SA or generate 31.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multilaser Industrial SA vs. Banco Pine SA
Performance |
| Timeline |
| Multilaser Industrial |
| Banco Pine SA |
Multilaser Industrial and Banco Pine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multilaser Industrial and Banco Pine
The main advantage of trading using opposite Multilaser Industrial and Banco Pine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multilaser Industrial position performs unexpectedly, Banco Pine 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 Banco Pine will offset losses from the drop in Banco Pine's long position.| Multilaser Industrial vs. Intelbras SA | Multilaser Industrial vs. Razen SA | Multilaser Industrial vs. Pet Center Comrcio | Multilaser Industrial vs. Locaweb Servios de |
| Banco Pine vs. Multilaser Industrial SA | Banco Pine vs. United Airlines Holdings | Banco Pine vs. Southwest Airlines Co | Banco Pine vs. UnitedHealth Group Incorporated |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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