Correlation Between Maptelligent and Cielo SA

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Can any of the company-specific risk be diversified away by investing in both Maptelligent and Cielo 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 Maptelligent and Cielo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maptelligent and Cielo SA, you can compare the effects of market volatilities on Maptelligent and Cielo 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 Maptelligent with a short position of Cielo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maptelligent and Cielo SA.

Diversification Opportunities for Maptelligent and Cielo SA

0.9
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Maptelligent and Cielo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Maptelligent and Cielo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cielo SA and Maptelligent 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 Maptelligent are associated (or correlated) with Cielo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cielo SA has no effect on the direction of Maptelligent i.e., Maptelligent and Cielo SA go up and down completely randomly.

Pair Corralation between Maptelligent and Cielo SA

If you would invest  0.04  in Maptelligent on September 22, 2024 and sell it today you would lose (0.01) from holding Maptelligent or give up 25.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy4.55%
ValuesDaily Returns

Maptelligent  vs.  Cielo SA

 Performance 
       Timeline  
Maptelligent 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Maptelligent are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Maptelligent unveiled solid returns over the last few months and may actually be approaching a breakup point.
Cielo SA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Cielo SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Cielo SA is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Maptelligent and Cielo SA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Maptelligent and Cielo SA

The main advantage of trading using opposite Maptelligent and Cielo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maptelligent position performs unexpectedly, Cielo 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 Cielo SA will offset losses from the drop in Cielo SA's long position.
The idea behind Maptelligent and Cielo 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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