Correlation Between Grupo SBF and Vibra Energia
Can any of the company-specific risk be diversified away by investing in both Grupo SBF and Vibra Energia 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 Vibra Energia 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 Vibra Energia SA, you can compare the effects of market volatilities on Grupo SBF and Vibra Energia 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 Vibra Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo SBF and Vibra Energia.
Diversification Opportunities for Grupo SBF and Vibra Energia
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and Vibra is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Grupo SBF SA and Vibra Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vibra Energia SA 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 Vibra Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vibra Energia SA has no effect on the direction of Grupo SBF i.e., Grupo SBF and Vibra Energia go up and down completely randomly.
Pair Corralation between Grupo SBF and Vibra Energia
Assuming the 90 days trading horizon Grupo SBF SA is expected to under-perform the Vibra Energia. In addition to that, Grupo SBF is 1.28 times more volatile than Vibra Energia SA. It trades about -0.24 of its total potential returns per unit of risk. Vibra Energia SA is currently generating about -0.06 per unit of volatility. If you would invest 1,776 in Vibra Energia SA on December 1, 2024 and sell it today you would lose (74.00) from holding Vibra Energia SA or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo SBF SA vs. Vibra Energia SA
Performance |
| Timeline |
| Grupo SBF SA |
| Vibra Energia SA |
Grupo SBF and Vibra Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo SBF and Vibra Energia
The main advantage of trading using opposite Grupo SBF and Vibra Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo SBF position performs unexpectedly, Vibra Energia 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 Vibra Energia will offset losses from the drop in Vibra Energia'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 |
| Vibra Energia vs. CTEEP Companhia | Vibra Energia vs. Cosan SA | Vibra Energia vs. Auren Energia SA | Vibra Energia vs. Telefnica Brasil 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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