Correlation Between Compania Cervecerias and Micromobility

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

By analyzing existing cross correlation between Compania Cervecerias Unidas and Micromobility, you can compare the effects of market volatilities on Compania Cervecerias and Micromobility 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 Compania Cervecerias with a short position of Micromobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Cervecerias and Micromobility.

Diversification Opportunities for Compania Cervecerias and Micromobility

-0.37

Correlation Coefficient

Compania Cervecerias  Micromobility

Very good diversification

The 3 months correlation between Compania and Micromobility is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Compania Cervecerias Unidas and Micromobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micromobility and Compania Cervecerias 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 Compania Cervecerias Unidas are associated (or correlated) with Micromobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micromobility has no effect on the direction of Compania Cervecerias i.e., Compania Cervecerias and Micromobility go up and down completely randomly.

Pair Corralation between Compania Cervecerias and Micromobility

If you would invest  1,164  in Compania Cervecerias Unidas on October 24, 2024 and sell it today you would earn a total of  2.00  from holding Compania Cervecerias Unidas or generate 0.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Compania Cervecerias Unidas  vs.  Micromobility

Compania Cervecerias

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Compania Cervecerias Unidas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Compania Cervecerias is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Micromobility

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Micromobility has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Micromobility is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Compania Cervecerias and Micromobility

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

The idea behind Compania Cervecerias Unidas and Micromobility 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.