Correlation Between Suzano SA and ATMA Participaes
Can any of the company-specific risk be diversified away by investing in both Suzano SA and ATMA Participaes 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 SA and ATMA Participaes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suzano SA and ATMA Participaes SA, you can compare the effects of market volatilities on Suzano SA and ATMA Participaes 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 SA with a short position of ATMA Participaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzano SA and ATMA Participaes.
Diversification Opportunities for Suzano SA and ATMA Participaes
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Suzano and ATMA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Suzano SA and ATMA Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMA Participaes and Suzano SA 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 SA are associated (or correlated) with ATMA Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMA Participaes has no effect on the direction of Suzano SA i.e., Suzano SA and ATMA Participaes go up and down completely randomly.
Pair Corralation between Suzano SA and ATMA Participaes
Assuming the 90 days trading horizon Suzano SA is expected to generate 0.43 times more return on investment than ATMA Participaes. However, Suzano SA is 2.33 times less risky than ATMA Participaes. It trades about 0.13 of its potential returns per unit of risk. ATMA Participaes SA is currently generating about -0.13 per unit of risk. If you would invest 5,934 in Suzano SA on August 27, 2024 and sell it today you would earn a total of 136.00 from holding Suzano SA or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzano SA vs. ATMA Participaes SA
Performance |
| Timeline |
| Suzano SA |
| ATMA Participaes |
Suzano SA and ATMA Participaes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzano SA and ATMA Participaes
The main advantage of trading using opposite Suzano SA and ATMA Participaes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzano SA position performs unexpectedly, ATMA Participaes 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 ATMA Participaes will offset losses from the drop in ATMA Participaes' long position.| Suzano SA vs. Companhia de Gs | Suzano SA vs. Rede Energia Participaes | Suzano SA vs. CTEEP Companhia | Suzano SA vs. Rio Paranapanema Energia |
| ATMA Participaes vs. Mliuz SA | ATMA Participaes vs. Lojas Quero Quero SA | ATMA Participaes vs. Grupo SBF SA | ATMA Participaes vs. Enjoei 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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