Correlation Between Marcopolo and Positivo Tecnologia
Can any of the company-specific risk be diversified away by investing in both Marcopolo and Positivo Tecnologia 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 Positivo Tecnologia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcopolo SA and Positivo Tecnologia SA, you can compare the effects of market volatilities on Marcopolo and Positivo Tecnologia 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 Positivo Tecnologia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcopolo and Positivo Tecnologia.
Diversification Opportunities for Marcopolo and Positivo Tecnologia
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marcopolo and Positivo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Marcopolo SA and Positivo Tecnologia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Positivo Tecnologia 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 Positivo Tecnologia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Positivo Tecnologia has no effect on the direction of Marcopolo i.e., Marcopolo and Positivo Tecnologia go up and down completely randomly.
Pair Corralation between Marcopolo and Positivo Tecnologia
Assuming the 90 days trading horizon Marcopolo SA is expected to generate 1.35 times more return on investment than Positivo Tecnologia. However, Marcopolo is 1.35 times more volatile than Positivo Tecnologia SA. It trades about 0.21 of its potential returns per unit of risk. Positivo Tecnologia SA is currently generating about 0.25 per unit of risk. If you would invest 730.00 in Marcopolo SA on October 24, 2024 and sell it today you would earn a total of 80.00 from holding Marcopolo SA or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcopolo SA vs. Positivo Tecnologia SA
Performance |
| Timeline |
| Marcopolo SA |
| Positivo Tecnologia |
Marcopolo and Positivo Tecnologia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcopolo and Positivo Tecnologia
The main advantage of trading using opposite Marcopolo and Positivo Tecnologia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcopolo position performs unexpectedly, Positivo Tecnologia 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 Positivo Tecnologia will offset losses from the drop in Positivo Tecnologia's long position.| Marcopolo vs. Randon SA Implementos | Marcopolo vs. Metalurgica Gerdau SA | Marcopolo vs. CCR SA | Marcopolo vs. Iochpe Maxion SA |
| Positivo Tecnologia vs. Marcopolo SA | Positivo Tecnologia vs. Gafisa SA | Positivo Tecnologia vs. Randon SA Implementos | Positivo Tecnologia vs. TOTVS SA |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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