Correlation Between Alupar Investimento and CSN Minerao

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

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

Diversification Opportunities for Alupar Investimento and CSN Minerao

-0.37

Correlation Coefficient

Alupar Investimento  CSN Minerao

Very good diversification

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

Pair Corralation between Alupar Investimento and CSN Minerao

Assuming the 90 days trading horizon Alupar Investimento SA is expected to generate 0.78 times more return on investment than CSN Minerao. However, Alupar Investimento SA is 1.28 times less risky than CSN Minerao. It trades about -0.02 of its potential returns per unit of risk. CSN Minerao SA is currently generating about -0.11 per unit of risk. If you would invest  2,987  in Alupar Investimento SA on April 24, 2025 and sell it today you would lose (57.00) from holding Alupar Investimento SA or give up 1.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Alupar Investimento SA  vs.  CSN Minerao SA

Alupar Investimento

Risk-Adjusted Performance

Very Weak

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

CSN Minerao SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSN Minerao SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Alupar Investimento and CSN Minerao

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

The idea behind Alupar Investimento SA and CSN Minerao 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.