Correlation Between Springs Global and Marcopolo
Can any of the company-specific risk be diversified away by investing in both Springs Global 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 Springs Global and Marcopolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Springs Global Participaes and Marcopolo SA, you can compare the effects of market volatilities on Springs Global 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 Springs Global with a short position of Marcopolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Springs Global and Marcopolo.
Diversification Opportunities for Springs Global and Marcopolo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Springs and Marcopolo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Springs Global Participaes and Marcopolo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcopolo SA and Springs Global 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 Springs Global Participaes 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 Springs Global i.e., Springs Global and Marcopolo go up and down completely randomly.
Pair Corralation between Springs Global and Marcopolo
Assuming the 90 days trading horizon Springs Global Participaes is expected to under-perform the Marcopolo. In addition to that, Springs Global is 2.88 times more volatile than Marcopolo SA. It trades about -0.01 of its total potential returns per unit of risk. Marcopolo SA is currently generating about 0.12 per unit of volatility. If you would invest 172.00 in Marcopolo SA on November 19, 2024 and sell it today you would earn a total of 456.00 from holding Marcopolo SA or generate 265.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Springs Global Participaes vs. Marcopolo SA
Performance |
| Timeline |
| Springs Global Parti |
| Marcopolo SA |
Springs Global and Marcopolo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Springs Global and Marcopolo
The main advantage of trading using opposite Springs Global and Marcopolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Springs Global 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.| Springs Global vs. Truist Financial | Springs Global vs. Capital One Financial | Springs Global vs. The Hartford Financial | Springs Global vs. MAHLE Metal Leve |
| Marcopolo vs. Marcopolo SA | Marcopolo vs. Randon SA Implementos | Marcopolo vs. Randon SA Implementos | Marcopolo vs. Klabin 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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