Correlation Between Pettenati and Mangels Industrial
Can any of the company-specific risk be diversified away by investing in both Pettenati and Mangels Industrial 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 Pettenati and Mangels Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pettenati SA Industria and Mangels Industrial SA, you can compare the effects of market volatilities on Pettenati and Mangels Industrial 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 Pettenati with a short position of Mangels Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pettenati and Mangels Industrial.
Diversification Opportunities for Pettenati and Mangels Industrial
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pettenati and Mangels is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pettenati SA Industria and Mangels Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangels Industrial and Pettenati 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 Pettenati SA Industria are associated (or correlated) with Mangels Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangels Industrial has no effect on the direction of Pettenati i.e., Pettenati and Mangels Industrial go up and down completely randomly.
Pair Corralation between Pettenati and Mangels Industrial
Assuming the 90 days trading horizon Pettenati SA Industria is expected to generate 0.55 times more return on investment than Mangels Industrial. However, Pettenati SA Industria is 1.81 times less risky than Mangels Industrial. It trades about -0.02 of its potential returns per unit of risk. Mangels Industrial SA is currently generating about -0.1 per unit of risk. If you would invest 621.00 in Pettenati SA Industria on October 26, 2024 and sell it today you would lose (56.00) from holding Pettenati SA Industria or give up 9.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pettenati SA Industria vs. Mangels Industrial SA
Performance |
| Timeline |
| Pettenati SA Industria |
| Mangels Industrial |
Pettenati and Mangels Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pettenati and Mangels Industrial
The main advantage of trading using opposite Pettenati and Mangels Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pettenati position performs unexpectedly, Mangels Industrial 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 Mangels Industrial will offset losses from the drop in Mangels Industrial's long position.| Pettenati vs. Schulz SA | Pettenati vs. Springs Global Participaes | Pettenati vs. Grazziotin SA | Pettenati vs. Companhia de Tecidos |
| Mangels Industrial vs. Txtil Renauxview SA | Mangels Industrial vs. Telecomunicaes Brasileiras SA | Mangels Industrial vs. Recrusul SA | Mangels Industrial vs. Pettenati SA Industria |
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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |