Correlation Between Grazziotin and Grupo Mateus
Can any of the company-specific risk be diversified away by investing in both Grazziotin and Grupo Mateus 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 Grazziotin and Grupo Mateus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grazziotin SA and Grupo Mateus SA, you can compare the effects of market volatilities on Grazziotin and Grupo Mateus 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 Grazziotin with a short position of Grupo Mateus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grazziotin and Grupo Mateus.
Diversification Opportunities for Grazziotin and Grupo Mateus
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grazziotin and Grupo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Grazziotin SA and Grupo Mateus SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Mateus SA and Grazziotin 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 Grazziotin SA are associated (or correlated) with Grupo Mateus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Mateus SA has no effect on the direction of Grazziotin i.e., Grazziotin and Grupo Mateus go up and down completely randomly.
Pair Corralation between Grazziotin and Grupo Mateus
Assuming the 90 days trading horizon Grazziotin SA is expected to generate 1.11 times more return on investment than Grupo Mateus. However, Grazziotin is 1.11 times more volatile than Grupo Mateus SA. It trades about 0.14 of its potential returns per unit of risk. Grupo Mateus SA is currently generating about -0.07 per unit of risk. If you would invest 2,393 in Grazziotin SA on September 25, 2024 and sell it today you would earn a total of 157.00 from holding Grazziotin SA or generate 6.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Grazziotin SA vs. Grupo Mateus SA
Performance |
Timeline |
Grazziotin SA |
Grupo Mateus SA |
Grazziotin and Grupo Mateus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grazziotin and Grupo Mateus
The main advantage of trading using opposite Grazziotin and Grupo Mateus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grazziotin position performs unexpectedly, Grupo Mateus 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 Grupo Mateus will offset losses from the drop in Grupo Mateus' long position.Grazziotin vs. Companhia de Gs | Grazziotin vs. Springs Global Participaes | Grazziotin vs. Companhia de Tecidos | Grazziotin vs. Marcopolo SA |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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