Correlation Between Grupo SBF and Westwing Comrcio
Can any of the company-specific risk be diversified away by investing in both Grupo SBF and Westwing Comrcio 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 Westwing Comrcio 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 Westwing Comrcio Varejista, you can compare the effects of market volatilities on Grupo SBF and Westwing Comrcio 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 Westwing Comrcio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo SBF and Westwing Comrcio.
Diversification Opportunities for Grupo SBF and Westwing Comrcio
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grupo and Westwing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Grupo SBF SA and Westwing Comrcio Varejista in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westwing Comrcio Var 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 Westwing Comrcio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westwing Comrcio Var has no effect on the direction of Grupo SBF i.e., Grupo SBF and Westwing Comrcio go up and down completely randomly.
Pair Corralation between Grupo SBF and Westwing Comrcio
Assuming the 90 days trading horizon Grupo SBF SA is expected to generate 0.63 times more return on investment than Westwing Comrcio. However, Grupo SBF SA is 1.59 times less risky than Westwing Comrcio. It trades about -0.33 of its potential returns per unit of risk. Westwing Comrcio Varejista is currently generating about -0.28 per unit of risk. If you would invest 1,426 in Grupo SBF SA on September 4, 2024 and sell it today you would lose (212.00) from holding Grupo SBF SA or give up 14.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo SBF SA vs. Westwing Comrcio Varejista
Performance |
| Timeline |
| Grupo SBF SA |
| Westwing Comrcio Var |
Grupo SBF and Westwing Comrcio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo SBF and Westwing Comrcio
The main advantage of trading using opposite Grupo SBF and Westwing Comrcio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo SBF position performs unexpectedly, Westwing Comrcio 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 Westwing Comrcio will offset losses from the drop in Westwing Comrcio's 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 |
| Westwing Comrcio vs. Mobly SA | Westwing Comrcio vs. Enjoei SA | Westwing Comrcio vs. Bemobi Mobile Tech | Westwing Comrcio vs. MPM Corpreos 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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