Correlation Between Grupo SBF and Infracommerce CXaaS
Can any of the company-specific risk be diversified away by investing in both Grupo SBF and Infracommerce CXaaS 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 Infracommerce CXaaS 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 Infracommerce CXaaS SA, you can compare the effects of market volatilities on Grupo SBF and Infracommerce CXaaS 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 Infracommerce CXaaS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo SBF and Infracommerce CXaaS.
Diversification Opportunities for Grupo SBF and Infracommerce CXaaS
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Grupo and Infracommerce is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Grupo SBF SA and Infracommerce CXaaS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infracommerce CXaaS 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 Infracommerce CXaaS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infracommerce CXaaS has no effect on the direction of Grupo SBF i.e., Grupo SBF and Infracommerce CXaaS go up and down completely randomly.
Pair Corralation between Grupo SBF and Infracommerce CXaaS
Assuming the 90 days trading horizon Grupo SBF is expected to generate 2.85 times less return on investment than Infracommerce CXaaS. But when comparing it to its historical volatility, Grupo SBF SA is 2.88 times less risky than Infracommerce CXaaS. It trades about 0.17 of its potential returns per unit of risk. Infracommerce CXaaS SA is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Infracommerce CXaaS SA on November 2, 2024 and sell it today you would earn a total of 2.00 from holding Infracommerce CXaaS SA or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grupo SBF SA vs. Infracommerce CXaaS SA
Performance |
| Timeline |
| Grupo SBF SA |
| Infracommerce CXaaS |
Grupo SBF and Infracommerce CXaaS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo SBF and Infracommerce CXaaS
The main advantage of trading using opposite Grupo SBF and Infracommerce CXaaS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo SBF position performs unexpectedly, Infracommerce CXaaS 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 Infracommerce CXaaS will offset losses from the drop in Infracommerce CXaaS's long position.| Grupo SBF vs. Lojas Quero Quero SA | Grupo SBF vs. Pet Center Comrcio | Grupo SBF vs. Eneva SA | Grupo SBF vs. Mliuz SA |
| Infracommerce CXaaS vs. Mliuz SA | Infracommerce CXaaS vs. Lojas Quero Quero SA | Infracommerce CXaaS vs. GPS Participaes e | Infracommerce CXaaS 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |