Correlation Between Marcopolo and MAHLE Metal
Can any of the company-specific risk be diversified away by investing in both Marcopolo and MAHLE Metal 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 Marcopolo and MAHLE Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcopolo SA and MAHLE Metal Leve, you can compare the effects of market volatilities on Marcopolo and MAHLE Metal 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 Marcopolo with a short position of MAHLE Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcopolo and MAHLE Metal.
Diversification Opportunities for Marcopolo and MAHLE Metal
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marcopolo and MAHLE is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Marcopolo SA and MAHLE Metal Leve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAHLE Metal Leve and Marcopolo 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 Marcopolo SA are associated (or correlated) with MAHLE Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAHLE Metal Leve has no effect on the direction of Marcopolo i.e., Marcopolo and MAHLE Metal go up and down completely randomly.
Pair Corralation between Marcopolo and MAHLE Metal
Assuming the 90 days trading horizon Marcopolo SA is expected to generate 1.18 times more return on investment than MAHLE Metal. However, Marcopolo is 1.18 times more volatile than MAHLE Metal Leve. It trades about 0.25 of its potential returns per unit of risk. MAHLE Metal Leve is currently generating about -0.26 per unit of risk. If you would invest 838.00 in Marcopolo SA on August 31, 2024 and sell it today you would earn a total of 92.00 from holding Marcopolo SA or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcopolo SA vs. MAHLE Metal Leve
Performance |
| Timeline |
| Marcopolo SA |
| MAHLE Metal Leve |
Marcopolo and MAHLE Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcopolo and MAHLE Metal
The main advantage of trading using opposite Marcopolo and MAHLE Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcopolo position performs unexpectedly, MAHLE Metal 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 MAHLE Metal will offset losses from the drop in MAHLE Metal's long position.| Marcopolo vs. Randon SA Implementos | Marcopolo vs. Metalurgica Gerdau SA | Marcopolo vs. CCR SA | Marcopolo vs. Iochpe Maxion SA |
| MAHLE Metal vs. Engie Brasil Energia | MAHLE Metal vs. Fras le SA | MAHLE Metal vs. Energisa SA | MAHLE Metal vs. Clave Indices De |
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.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |