Correlation Between Ultrapar Participacoes and Aemetis
Can any of the company-specific risk be diversified away by investing in both Ultrapar Participacoes and Aemetis 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 Ultrapar Participacoes and Aemetis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultrapar Participacoes SA and Aemetis, you can compare the effects of market volatilities on Ultrapar Participacoes and Aemetis 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 Ultrapar Participacoes with a short position of Aemetis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultrapar Participacoes and Aemetis.
Diversification Opportunities for Ultrapar Participacoes and Aemetis
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ultrapar and Aemetis is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ultrapar Participacoes SA and Aemetis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aemetis and Ultrapar Participacoes 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 Ultrapar Participacoes SA are associated (or correlated) with Aemetis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aemetis has no effect on the direction of Ultrapar Participacoes i.e., Ultrapar Participacoes and Aemetis go up and down completely randomly.
Pair Corralation between Ultrapar Participacoes and Aemetis
Considering the 90-day investment horizon Ultrapar Participacoes is expected to generate 2.07 times less return on investment than Aemetis. But when comparing it to its historical volatility, Ultrapar Participacoes SA is 2.74 times less risky than Aemetis. It trades about 0.03 of its potential returns per unit of risk. Aemetis is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 461.00 in Aemetis on August 27, 2024 and sell it today you would lose (58.00) from holding Aemetis or give up 12.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultrapar Participacoes SA vs. Aemetis
Performance |
| Timeline |
| Ultrapar Participacoes |
| Aemetis |
Ultrapar Participacoes and Aemetis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultrapar Participacoes and Aemetis
The main advantage of trading using opposite Ultrapar Participacoes and Aemetis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultrapar Participacoes position performs unexpectedly, Aemetis 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 Aemetis will offset losses from the drop in Aemetis' long position.| Ultrapar Participacoes vs. Star Gas Partners | Ultrapar Participacoes vs. Par Pacific Holdings | Ultrapar Participacoes vs. Delek Energy | Ultrapar Participacoes vs. Crossamerica Partners LP |
| Aemetis vs. PBF Energy | Aemetis vs. Clean Energy Fuels | Aemetis vs. Par Pacific Holdings | Aemetis vs. Vertex Energy |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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