Correlation Between Grupo SBF and ATMA Participaes
Can any of the company-specific risk be diversified away by investing in both Grupo SBF and ATMA Participaes 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 Grupo SBF and ATMA Participaes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo SBF SA and ATMA Participaes SA, you can compare the effects of market volatilities on Grupo SBF and ATMA Participaes 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 Grupo SBF with a short position of ATMA Participaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo SBF and ATMA Participaes.
Diversification Opportunities for Grupo SBF and ATMA Participaes
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grupo and ATMA is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Grupo SBF SA and ATMA Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMA Participaes and Grupo SBF 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 Grupo SBF SA are associated (or correlated) with ATMA Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMA Participaes has no effect on the direction of Grupo SBF i.e., Grupo SBF and ATMA Participaes go up and down completely randomly.
Pair Corralation between Grupo SBF and ATMA Participaes
Assuming the 90 days trading horizon Grupo SBF SA is expected to under-perform the ATMA Participaes. But the stock apears to be less risky and, when comparing its historical volatility, Grupo SBF SA is 1.48 times less risky than ATMA Participaes. The stock trades about -0.04 of its potential returns per unit of risk. The ATMA Participaes SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 112.00 in ATMA Participaes SA on October 20, 2024 and sell it today you would earn a total of 2.00 from holding ATMA Participaes SA or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo SBF SA vs. ATMA Participaes SA
Performance |
| Timeline |
| Grupo SBF SA |
| ATMA Participaes |
Grupo SBF and ATMA Participaes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo SBF and ATMA Participaes
The main advantage of trading using opposite Grupo SBF and ATMA Participaes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo SBF position performs unexpectedly, ATMA Participaes 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 ATMA Participaes will offset losses from the drop in ATMA Participaes' long position.| Grupo SBF vs. Pet Center Comrcio | Grupo SBF vs. Mitre Realty Empreendimentos | Grupo SBF vs. Mliuz SA | Grupo SBF vs. Direcional Engenharia SA |
| ATMA Participaes vs. Mliuz SA | ATMA Participaes vs. Lojas Quero Quero SA | ATMA Participaes vs. GPS Participaes e | ATMA Participaes vs. Grupo SBF 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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