Correlation Between Ambipar Participaes and Dimed SA

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

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

Diversification Opportunities for Ambipar Participaes and Dimed SA

-0.26

Correlation Coefficient

Ambipar Participaes  Dimed SA

Very good diversification

The 3 months correlation between Ambipar and Dimed is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ambipar Participaes e and Dimed SA Distribuidora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimed SA Distribuidora and Ambipar Participaes 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 Ambipar Participaes e are associated (or correlated) with Dimed SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimed SA Distribuidora has no effect on the direction of Ambipar Participaes i.e., Ambipar Participaes and Dimed SA go up and down completely randomly.

Pair Corralation between Ambipar Participaes and Dimed SA

Assuming the 90 days trading horizon Ambipar Participaes e is expected to generate 2.69 times more return on investment than Dimed SA. However, Ambipar Participaes is 2.69 times more volatile than Dimed SA Distribuidora. It trades about 0.02 of its potential returns per unit of risk. Dimed SA Distribuidora is currently generating about 0.04 per unit of risk. If you would invest  14,175  in Ambipar Participaes e on April 25, 2025 and sell it today you would earn a total of  110.00  from holding Ambipar Participaes e or generate 0.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ambipar Participaes e  vs.  Dimed SA Distribuidora

Ambipar Participaes

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ambipar Participaes e are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Ambipar Participaes may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Dimed SA Distribuidora

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dimed SA Distribuidora are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Dimed SA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ambipar Participaes and Dimed SA

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

The idea behind Ambipar Participaes e and Dimed SA Distribuidora 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.