Correlation Between Recrusul and Marcopolo
Can any of the company-specific risk be diversified away by investing in both Recrusul and Marcopolo 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 Recrusul and Marcopolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Recrusul SA and Marcopolo SA, you can compare the effects of market volatilities on Recrusul and Marcopolo 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 Recrusul with a short position of Marcopolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Recrusul and Marcopolo.
Diversification Opportunities for Recrusul and Marcopolo
Poor diversification
The 3 months correlation between Recrusul and Marcopolo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Recrusul SA and Marcopolo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcopolo SA and Recrusul 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 Recrusul SA are associated (or correlated) with Marcopolo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcopolo SA has no effect on the direction of Recrusul i.e., Recrusul and Marcopolo go up and down completely randomly.
Pair Corralation between Recrusul and Marcopolo
Assuming the 90 days trading horizon Recrusul SA is expected to under-perform the Marcopolo. In addition to that, Recrusul is 2.58 times more volatile than Marcopolo SA. It trades about -0.65 of its total potential returns per unit of risk. Marcopolo SA is currently generating about -0.32 per unit of volatility. If you would invest 854.00 in Marcopolo SA on October 9, 2024 and sell it today you would lose (108.00) from holding Marcopolo SA or give up 12.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Recrusul SA vs. Marcopolo SA
Performance |
| Timeline |
| Recrusul SA |
| Marcopolo SA |
Recrusul and Marcopolo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Recrusul and Marcopolo
The main advantage of trading using opposite Recrusul and Marcopolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Recrusul position performs unexpectedly, Marcopolo 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 Marcopolo will offset losses from the drop in Marcopolo's long position.| Recrusul vs. Recrusul SA | Recrusul vs. Lupatech SA | Recrusul vs. Viver Incorporadora e | Recrusul vs. Triunfo Participaes e |
| Marcopolo vs. Randon SA Implementos | Marcopolo vs. Metalurgica Gerdau SA | Marcopolo vs. CCR SA | Marcopolo vs. Iochpe Maxion 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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