Correlation Between Fiplasto and Capex SA

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

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

Diversification Opportunities for Fiplasto and Capex SA

0.0

Correlation Coefficient

Fiplasto  Capex SA

Pay attention - limited upside

The 3 months correlation between Fiplasto and Capex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fiplasto SA and Capex SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capex SA and Fiplasto 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 Fiplasto SA are associated (or correlated) with Capex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capex SA has no effect on the direction of Fiplasto i.e., Fiplasto and Capex SA go up and down completely randomly.

Pair Corralation between Fiplasto and Capex SA

If you would invest  0.00  in Capex SA on December 22, 2024 and sell it today you would earn a total of  0.00  from holding Capex SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Fiplasto SA  vs.  Capex SA

Fiplasto SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fiplasto SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Capex SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Capex SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Capex SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fiplasto and Capex SA

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

The idea behind Fiplasto SA and Capex SA 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.