Correlation Between Intelbras and Multilaser Industrial
Can any of the company-specific risk be diversified away by investing in both Intelbras and Multilaser Industrial 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 Intelbras and Multilaser Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intelbras SA and Multilaser Industrial SA, you can compare the effects of market volatilities on Intelbras and Multilaser Industrial 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 Intelbras with a short position of Multilaser Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelbras and Multilaser Industrial.
Diversification Opportunities for Intelbras and Multilaser Industrial
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intelbras and Multilaser is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intelbras SA and Multilaser Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multilaser Industrial and Intelbras 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 Intelbras SA are associated (or correlated) with Multilaser Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multilaser Industrial has no effect on the direction of Intelbras i.e., Intelbras and Multilaser Industrial go up and down completely randomly.
Pair Corralation between Intelbras and Multilaser Industrial
Assuming the 90 days trading horizon Intelbras SA is expected to generate 0.7 times more return on investment than Multilaser Industrial. However, Intelbras SA is 1.43 times less risky than Multilaser Industrial. It trades about 0.1 of its potential returns per unit of risk. Multilaser Industrial SA is currently generating about -0.12 per unit of risk. If you would invest 1,318 in Intelbras SA on April 23, 2025 and sell it today you would earn a total of 167.00 from holding Intelbras SA or generate 12.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Intelbras SA vs. Multilaser Industrial SA
Performance |
Timeline |
Intelbras SA |
Multilaser Industrial |
Intelbras and Multilaser Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intelbras and Multilaser Industrial
The main advantage of trading using opposite Intelbras and Multilaser Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelbras position performs unexpectedly, Multilaser Industrial 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 Multilaser Industrial will offset losses from the drop in Multilaser Industrial's long position.Intelbras vs. Mliuz SA | Intelbras vs. Locaweb Servios de | Intelbras vs. Pet Center Comrcio | Intelbras vs. Aeris Indstria e |
Multilaser Industrial vs. Intelbras SA | Multilaser Industrial vs. Razen SA | Multilaser Industrial vs. Pet Center Comrcio | Multilaser Industrial vs. Locaweb Servios de |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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