Correlation Between Metalfrio Solutions and Tres Tentos

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

By analyzing existing cross correlation between Metalfrio Solutions SA and Tres Tentos Agroindustrial, you can compare the effects of market volatilities on Metalfrio Solutions and Tres Tentos 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 Metalfrio Solutions with a short position of Tres Tentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metalfrio Solutions and Tres Tentos.

Diversification Opportunities for Metalfrio Solutions and Tres Tentos

0.41

Correlation Coefficient

Metalfrio Solutions  Tres Tentos

Very weak diversification

The 3 months correlation between Metalfrio and Tres is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Metalfrio Solutions SA and Tres Tentos Agroindustrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tres Tentos Agroindu and Metalfrio Solutions 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 Metalfrio Solutions SA are associated (or correlated) with Tres Tentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tres Tentos Agroindu has no effect on the direction of Metalfrio Solutions i.e., Metalfrio Solutions and Tres Tentos go up and down completely randomly.

Pair Corralation between Metalfrio Solutions and Tres Tentos

Assuming the 90 days trading horizon Metalfrio Solutions SA is expected to under-perform the Tres Tentos. In addition to that, Metalfrio Solutions is 1.11 times more volatile than Tres Tentos Agroindustrial. It trades about -0.29 of its total potential returns per unit of risk. Tres Tentos Agroindustrial is currently generating about -0.15 per unit of volatility. If you would invest  1,620  in Tres Tentos Agroindustrial on April 25, 2025 and sell it today you would lose (257.00) from holding Tres Tentos Agroindustrial or give up 15.86% of portfolio value over 90 days.

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

Metalfrio Solutions SA  vs.  Tres Tentos Agroindustrial

Metalfrio Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Metalfrio Solutions SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Tres Tentos Agroindu

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tres Tentos Agroindustrial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Metalfrio Solutions and Tres Tentos

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

The idea behind Metalfrio Solutions SA and Tres Tentos Agroindustrial 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 Transaction History module to view history of all your transactions and understand their impact on performance.