Correlation Between Camil Alimentos and LOG Commercial

Can any of the company-specific risk be diversified away by investing in both Camil Alimentos and LOG Commercial 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 Camil Alimentos and LOG Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Camil Alimentos SA and LOG Commercial Properties, you can compare the effects of market volatilities on Camil Alimentos and LOG Commercial 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 Camil Alimentos with a short position of LOG Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camil Alimentos and LOG Commercial.

Diversification Opportunities for Camil Alimentos and LOG Commercial

0.42

Correlation Coefficient

Camil Alimentos  LOG Commercial

Very weak diversification

The 3 months correlation between Camil and LOG is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Camil Alimentos SA and LOG Commercial Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOG Commercial Properties and Camil Alimentos 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 Camil Alimentos SA are associated (or correlated) with LOG Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOG Commercial Properties has no effect on the direction of Camil Alimentos i.e., Camil Alimentos and LOG Commercial go up and down completely randomly.

Pair Corralation between Camil Alimentos and LOG Commercial

Assuming the 90 days trading horizon Camil Alimentos SA is expected to generate 1.42 times more return on investment than LOG Commercial. However, Camil Alimentos is 1.42 times more volatile than LOG Commercial Properties. It trades about 0.16 of its potential returns per unit of risk. LOG Commercial Properties is currently generating about 0.04 per unit of risk. If you would invest  400.00  in Camil Alimentos SA on April 21, 2025 and sell it today you would earn a total of  98.00  from holding Camil Alimentos SA or generate 24.5% return on investment over 90 days.

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

Camil Alimentos SA  vs.  LOG Commercial Properties

Camil Alimentos SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Camil Alimentos SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Camil Alimentos unveiled solid returns over the last few months and may actually be approaching a breakup point.

LOG Commercial Properties

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LOG Commercial Properties are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, LOG Commercial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Camil Alimentos and LOG Commercial

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

The idea behind Camil Alimentos SA and LOG Commercial Properties 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.