Correlation Between Cruzeiro and Yduqs Participaes

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

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

Diversification Opportunities for Cruzeiro and Yduqs Participaes

0.87

Correlation Coefficient

Cruzeiro  Yduqs Participaes

Very poor diversification

The 3 months correlation between Cruzeiro and Yduqs is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Cruzeiro do Sul and Yduqs Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yduqs Participaes and Cruzeiro 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 Cruzeiro do Sul are associated (or correlated) with Yduqs Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yduqs Participaes has no effect on the direction of Cruzeiro i.e., Cruzeiro and Yduqs Participaes go up and down completely randomly.

Pair Corralation between Cruzeiro and Yduqs Participaes

Assuming the 90 days trading horizon Cruzeiro do Sul is expected to generate 0.82 times more return on investment than Yduqs Participaes. However, Cruzeiro do Sul is 1.22 times less risky than Yduqs Participaes. It trades about 0.26 of its potential returns per unit of risk. Yduqs Participaes SA is currently generating about 0.06 per unit of risk. If you would invest  397.00  in Cruzeiro do Sul on April 6, 2025 and sell it today you would earn a total of  113.00  from holding Cruzeiro do Sul or generate 28.46% return on investment over 90 days.

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

Cruzeiro do Sul  vs.  Yduqs Participaes SA

Cruzeiro do Sul

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Cruzeiro do Sul are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Cruzeiro unveiled solid returns over the last few months and may actually be approaching a breakup point.

Yduqs Participaes

Risk-Adjusted Performance

Good

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

Pair Trading with Cruzeiro and Yduqs Participaes

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

The idea behind Cruzeiro do Sul and Yduqs 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.