Correlation Between Co Operaters and CSN Minerao

Can any of the company-specific risk be diversified away by investing in both Co Operaters and CSN Minerao 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 Co Operaters and CSN Minerao into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Co Operaters Gen and CSN Minerao SA, you can compare the effects of market volatilities on Co Operaters and CSN Minerao 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 Co Operaters with a short position of CSN Minerao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Co Operaters and CSN Minerao.

Diversification Opportunities for Co Operaters and CSN Minerao

-0.8

Correlation Coefficient

Co Operaters  CSN Minerao

Pay attention - limited upside

The 3 months correlation between CCS-PC and CSN is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Co Operaters Gen and CSN Minerao SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSN Minerao SA and Co Operaters 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 Co Operaters Gen are associated (or correlated) with CSN Minerao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSN Minerao SA has no effect on the direction of Co Operaters i.e., Co Operaters and CSN Minerao go up and down completely randomly.

Pair Corralation between Co Operaters and CSN Minerao

Assuming the 90 days trading horizon Co Operaters Gen is expected to generate 0.4 times more return on investment than CSN Minerao. However, Co Operaters Gen is 2.51 times less risky than CSN Minerao. It trades about 0.09 of its potential returns per unit of risk. CSN Minerao SA is currently generating about -0.08 per unit of risk. If you would invest  2,132  in Co Operaters Gen on April 23, 2025 and sell it today you would earn a total of  88.00  from holding Co Operaters Gen or generate 4.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Co Operaters Gen  vs.  CSN Minerao SA

Co Operaters Gen

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Co Operaters Gen are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Co Operaters is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

CSN Minerao SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSN Minerao SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Co Operaters and CSN Minerao

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

The idea behind Co Operaters Gen and CSN Minerao SA 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.