Correlation Between Borges Agricultural and Parlem Telecom

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

By analyzing existing cross correlation between Borges Agricultural Industrial and Parlem Telecom Companyia, you can compare the effects of market volatilities on Borges Agricultural and Parlem Telecom 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 Borges Agricultural with a short position of Parlem Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borges Agricultural and Parlem Telecom.

Diversification Opportunities for Borges Agricultural and Parlem Telecom

-0.02

Correlation Coefficient

Borges Agricultural  Parlem Telecom

Good diversification

The 3 months correlation between Borges and Parlem is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Borges Agricultural Industrial and Parlem Telecom Companyia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parlem Telecom ia and Borges Agricultural 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 Borges Agricultural Industrial are associated (or correlated) with Parlem Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parlem Telecom ia has no effect on the direction of Borges Agricultural i.e., Borges Agricultural and Parlem Telecom go up and down completely randomly.

Pair Corralation between Borges Agricultural and Parlem Telecom

Assuming the 90 days trading horizon Borges Agricultural is expected to generate 17.23 times less return on investment than Parlem Telecom. But when comparing it to its historical volatility, Borges Agricultural Industrial is 3.0 times less risky than Parlem Telecom. It trades about 0.03 of its potential returns per unit of risk. Parlem Telecom Companyia is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  324.00  in Parlem Telecom Companyia on April 22, 2025 and sell it today you would earn a total of  40.00  from holding Parlem Telecom Companyia or generate 12.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.63%
Values	Daily Returns

Borges Agricultural Industrial  vs.  Parlem Telecom Companyia

Borges Agricultural

Risk-Adjusted Performance

Weak

Over the last 90 days Borges Agricultural Industrial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Borges Agricultural is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Parlem Telecom ia

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Parlem Telecom Companyia are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Parlem Telecom may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Borges Agricultural and Parlem Telecom

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

The idea behind Borges Agricultural Industrial and Parlem Telecom Companyia 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.