Correlation Between Maison Solutions and Sendas Distribuidora
Can any of the company-specific risk be diversified away by investing in both Maison Solutions and Sendas Distribuidora 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 Maison Solutions and Sendas Distribuidora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maison Solutions and Sendas Distribuidora SA, you can compare the effects of market volatilities on Maison Solutions and Sendas Distribuidora 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 Maison Solutions with a short position of Sendas Distribuidora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maison Solutions and Sendas Distribuidora.
Diversification Opportunities for Maison Solutions and Sendas Distribuidora
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maison and Sendas is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Maison Solutions and Sendas Distribuidora SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sendas Distribuidora and Maison Solutions 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 Maison Solutions are associated (or correlated) with Sendas Distribuidora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sendas Distribuidora has no effect on the direction of Maison Solutions i.e., Maison Solutions and Sendas Distribuidora go up and down completely randomly.
Pair Corralation between Maison Solutions and Sendas Distribuidora
Considering the 90-day investment horizon Maison Solutions is expected to generate 4.67 times more return on investment than Sendas Distribuidora. However, Maison Solutions is 4.67 times more volatile than Sendas Distribuidora SA. It trades about -0.12 of its potential returns per unit of risk. Sendas Distribuidora SA is currently generating about -0.58 per unit of risk. If you would invest 129.00 in Maison Solutions on November 9, 2024 and sell it today you would lose (14.00) from holding Maison Solutions or give up 10.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 15.0% |
| Values | Daily Returns |
Maison Solutions vs. Sendas Distribuidora SA
Performance |
| Timeline |
| Maison Solutions |
| Sendas Distribuidora |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Maison Solutions and Sendas Distribuidora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maison Solutions and Sendas Distribuidora
The main advantage of trading using opposite Maison Solutions and Sendas Distribuidora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maison Solutions position performs unexpectedly, Sendas Distribuidora 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 Sendas Distribuidora will offset losses from the drop in Sendas Distribuidora's long position.| Maison Solutions vs. Q2 Holdings | Maison Solutions vs. Life360, Common Stock | Maison Solutions vs. Insteel Industries | Maison Solutions vs. Joint Stock |
| Sendas Distribuidora vs. Village Super Market | Sendas Distribuidora vs. Weis Markets | Sendas Distribuidora vs. Ingles Markets Incorporated | Sendas Distribuidora vs. Grocery Outlet Holding |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets |