Correlation Between Camil Alimentos and So Carlos

Can any of the company-specific risk be diversified away by investing in both Camil Alimentos and So Carlos 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 So Carlos 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 So Carlos Empreendimentos, you can compare the effects of market volatilities on Camil Alimentos and So Carlos 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 So Carlos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camil Alimentos and So Carlos.

Diversification Opportunities for Camil Alimentos and So Carlos

-0.4

Correlation Coefficient

Camil Alimentos  So Carlos

Very good diversification

The 3 months correlation between Camil and SCAR3 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Camil Alimentos SA and So Carlos Empreendimentos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on So Carlos Empreendimentos 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 So Carlos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of So Carlos Empreendimentos has no effect on the direction of Camil Alimentos i.e., Camil Alimentos and So Carlos go up and down completely randomly.

Pair Corralation between Camil Alimentos and So Carlos

Assuming the 90 days trading horizon Camil Alimentos SA is expected to generate 1.12 times more return on investment than So Carlos. However, Camil Alimentos is 1.12 times more volatile than So Carlos Empreendimentos. It trades about 0.12 of its potential returns per unit of risk. So Carlos Empreendimentos is currently generating about -0.03 per unit of risk. If you would invest  421.00  in Camil Alimentos SA on April 25, 2025 and sell it today you would earn a total of  72.00  from holding Camil Alimentos SA or generate 17.1% return on investment over 90 days.

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

Camil Alimentos SA  vs.  So Carlos Empreendimentos

Camil Alimentos SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Camil Alimentos SA are ranked lower than 9 (%) 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.

So Carlos Empreendimentos

Risk-Adjusted Performance

Very Weak

Over the last 90 days So Carlos Empreendimentos has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, So Carlos 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 So Carlos

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

The idea behind Camil Alimentos SA and So Carlos Empreendimentos 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.