Correlation Between Mitre Realty and Grupo SBF
Can any of the company-specific risk be diversified away by investing in both Mitre Realty and Grupo SBF 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 Mitre Realty and Grupo SBF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitre Realty Empreendimentos and Grupo SBF SA, you can compare the effects of market volatilities on Mitre Realty and Grupo SBF 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 Mitre Realty with a short position of Grupo SBF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitre Realty and Grupo SBF.
Diversification Opportunities for Mitre Realty and Grupo SBF
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitre and Grupo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mitre Realty Empreendimentos and Grupo SBF SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo SBF SA and Mitre Realty 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 Mitre Realty Empreendimentos are associated (or correlated) with Grupo SBF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo SBF SA has no effect on the direction of Mitre Realty i.e., Mitre Realty and Grupo SBF go up and down completely randomly.
Pair Corralation between Mitre Realty and Grupo SBF
Assuming the 90 days trading horizon Mitre Realty Empreendimentos is expected to generate 0.76 times more return on investment than Grupo SBF. However, Mitre Realty Empreendimentos is 1.32 times less risky than Grupo SBF. It trades about -0.03 of its potential returns per unit of risk. Grupo SBF SA is currently generating about -0.07 per unit of risk. If you would invest 328.00 in Mitre Realty Empreendimentos on December 2, 2024 and sell it today you would lose (24.00) from holding Mitre Realty Empreendimentos or give up 7.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Mitre Realty Empreendimentos vs. Grupo SBF SA
Performance |
Timeline |
Mitre Realty Empreen |
Grupo SBF SA |
Mitre Realty and Grupo SBF Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mitre Realty and Grupo SBF
The main advantage of trading using opposite Mitre Realty and Grupo SBF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitre Realty position performs unexpectedly, Grupo SBF 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 SBF will offset losses from the drop in Grupo SBF's long position.Mitre Realty vs. Direcional Engenharia SA | Mitre Realty vs. Lojas Quero Quero SA | Mitre Realty vs. Eneva SA | Mitre Realty vs. Banco Pan SA |
Grupo SBF vs. Lojas Quero Quero SA | Grupo SBF vs. Pet Center Comrcio | Grupo SBF vs. Eneva SA | Grupo SBF vs. Mliuz SA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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