Correlation Between Infracommerce CXaaS and Neogrid Participaes

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

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

Diversification Opportunities for Infracommerce CXaaS and Neogrid Participaes

-0.66

Correlation Coefficient

Infracommerce CXaaS  Neogrid Participaes

Excellent diversification

The 3 months correlation between Infracommerce and Neogrid is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Infracommerce CXaaS SA and Neogrid Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogrid Participaes and Infracommerce CXaaS 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 Infracommerce CXaaS SA are associated (or correlated) with Neogrid Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogrid Participaes has no effect on the direction of Infracommerce CXaaS i.e., Infracommerce CXaaS and Neogrid Participaes go up and down completely randomly.

Pair Corralation between Infracommerce CXaaS and Neogrid Participaes

Assuming the 90 days trading horizon Infracommerce CXaaS SA is expected to under-perform the Neogrid Participaes. In addition to that, Infracommerce CXaaS is 2.41 times more volatile than Neogrid Participaes SA. It trades about -0.09 of its total potential returns per unit of risk. Neogrid Participaes SA is currently generating about 0.11 per unit of volatility. If you would invest  2,030  in Neogrid Participaes SA on April 24, 2025 and sell it today you would earn a total of  524.00  from holding Neogrid Participaes SA or generate 25.81% return on investment over 90 days.

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

Infracommerce CXaaS SA  vs.  Neogrid Participaes SA

Infracommerce CXaaS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Infracommerce CXaaS SA 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.

Neogrid Participaes

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Neogrid Participaes SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Neogrid Participaes unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Infracommerce CXaaS and Neogrid Participaes

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

The idea behind Infracommerce CXaaS SA and Neogrid 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.