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 |
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
Performance |
Timeline |
Camil Alimentos SA |
So Carlos Empreendimentos |
Camil Alimentos and So Carlos Volatility Contrast
Predicted Return Density |
Returns |
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.Camil Alimentos vs. SLC Agrcola SA | Camil Alimentos vs. Movida Participaes SA | Camil Alimentos vs. Indstrias Romi SA | Camil Alimentos vs. M Dias Branco |
So Carlos vs. Moura Dubeux Engenharia | So Carlos vs. LOG Commercial Properties | So Carlos vs. LPS Brasil | So Carlos vs. Multiplan Empreendimentos Imobilirios |
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.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities |