Correlation Between Cogna Educao and JHSF Participaes

Can any of the company-specific risk be diversified away by investing in both Cogna Educao and JHSF Participaes 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 Cogna Educao and JHSF Participaes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cogna Educao SA and JHSF Participaes SA, you can compare the effects of market volatilities on Cogna Educao and JHSF Participaes 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 Cogna Educao with a short position of JHSF Participaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogna Educao and JHSF Participaes.

Diversification Opportunities for Cogna Educao and JHSF Participaes

0.0

Correlation Coefficient

Cogna Educao  JHSF Participaes

Pay attention - limited upside

The 3 months correlation between Cogna and JHSF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cogna Educao SA and JHSF Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JHSF Participaes and Cogna Educao 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 Cogna Educao SA are associated (or correlated) with JHSF Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JHSF Participaes has no effect on the direction of Cogna Educao i.e., Cogna Educao and JHSF Participaes go up and down completely randomly.

Pair Corralation between Cogna Educao and JHSF Participaes

If you would invest  233.00  in Cogna Educao SA on April 23, 2025 and sell it today you would earn a total of  26.00  from holding Cogna Educao SA or generate 11.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cogna Educao SA  vs.  JHSF Participaes SA

Cogna Educao SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cogna Educao SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cogna Educao unveiled solid returns over the last few months and may actually be approaching a breakup point.

JHSF Participaes

Risk-Adjusted Performance

Modest

Over the last 90 days JHSF Participaes SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, JHSF Participaes is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cogna Educao and JHSF Participaes

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

The idea behind Cogna Educao SA and JHSF Participaes 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.