Correlation Between Suzano Papel and BPM
Can any of the company-specific risk be diversified away by investing in both Suzano Papel and BPM 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 Suzano Papel and BPM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suzano Papel e and BPM Inc, you can compare the effects of market volatilities on Suzano Papel and BPM 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 Suzano Papel with a short position of BPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzano Papel and BPM.
Diversification Opportunities for Suzano Papel and BPM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Suzano and BPM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Suzano Papel e and BPM Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPM Inc and Suzano Papel 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 Suzano Papel e are associated (or correlated) with BPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPM Inc has no effect on the direction of Suzano Papel i.e., Suzano Papel and BPM go up and down completely randomly.
Pair Corralation between Suzano Papel and BPM
If you would invest 917.00 in Suzano Papel e on September 5, 2024 and sell it today you would earn a total of 135.00 from holding Suzano Papel e or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Suzano Papel e vs. BPM Inc
Performance |
| Timeline |
| Suzano Papel e |
| BPM Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Suzano Papel and BPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzano Papel and BPM
The main advantage of trading using opposite Suzano Papel and BPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzano Papel position performs unexpectedly, BPM 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 BPM will offset losses from the drop in BPM's long position.| Suzano Papel vs. Mercer International | Suzano Papel vs. UPM Kymmene Oyj | Suzano Papel vs. Clearwater Paper | Suzano Papel vs. Klabin Sa A |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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