Correlation Between Cury Construtora and Ambipar Participaes

Can any of the company-specific risk be diversified away by investing in both Cury Construtora and Ambipar 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 Cury Construtora and Ambipar Participaes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cury Construtora e and Ambipar Participaes e, you can compare the effects of market volatilities on Cury Construtora and Ambipar 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 Cury Construtora with a short position of Ambipar Participaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cury Construtora and Ambipar Participaes.

Diversification Opportunities for Cury Construtora and Ambipar Participaes

-0.53

Correlation Coefficient

Cury Construtora  Ambipar Participaes

Excellent diversification

The 3 months correlation between Cury and Ambipar is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cury Construtora e and Ambipar Participaes e in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambipar Participaes and Cury Construtora 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 Cury Construtora e are associated (or correlated) with Ambipar Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambipar Participaes has no effect on the direction of Cury Construtora i.e., Cury Construtora and Ambipar Participaes go up and down completely randomly.

Pair Corralation between Cury Construtora and Ambipar Participaes

Assuming the 90 days trading horizon Cury Construtora e is expected to under-perform the Ambipar Participaes. But the stock apears to be less risky and, when comparing its historical volatility, Cury Construtora e is 5.9 times less risky than Ambipar Participaes. The stock trades about -0.37 of its potential returns per unit of risk. The Ambipar Participaes e is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  16,378  in Ambipar Participaes e on September 28, 2024 and sell it today you would lose (2,882) from holding Ambipar Participaes e or give up 17.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Cury Construtora e  vs.  Ambipar Participaes e

Cury Construtora e

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cury Construtora e has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Ambipar Participaes

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ambipar Participaes e are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ambipar Participaes unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cury Construtora and Ambipar Participaes

The main advantage of trading using opposite Cury Construtora and Ambipar Participaes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cury Construtora position performs unexpectedly, Ambipar 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 Ambipar Participaes will offset losses from the drop in Ambipar Participaes' long position.

The idea behind Cury Construtora e and Ambipar Participaes e pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.