Correlation Between Itasa Investimentos and Track Field

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

By analyzing existing cross correlation between Itasa Investimentos and Track Field Co, you can compare the effects of market volatilities on Itasa Investimentos and Track Field 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 Itasa Investimentos with a short position of Track Field. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itasa Investimentos and Track Field.

Diversification Opportunities for Itasa Investimentos and Track Field

0.25

Correlation Coefficient

Itasa Investimentos  Track Field

Modest diversification

The 3 months correlation between Itasa and Track is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Itasa Investimentos and Track Field Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Track Field and Itasa Investimentos 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 Itasa Investimentos are associated (or correlated) with Track Field. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Track Field has no effect on the direction of Itasa Investimentos i.e., Itasa Investimentos and Track Field go up and down completely randomly.

Pair Corralation between Itasa Investimentos and Track Field

Assuming the 90 days trading horizon Itasa Investimentos is expected to generate 30.48 times less return on investment than Track Field. But when comparing it to its historical volatility, Itasa Investimentos is 1.72 times less risky than Track Field. It trades about 0.01 of its potential returns per unit of risk. Track Field Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  1,121  in Track Field Co on April 25, 2025 and sell it today you would earn a total of  299.00  from holding Track Field Co or generate 26.67% return on investment over 90 days.

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

Itasa Investimentos  vs.  Track Field Co

Itasa Investimentos

Risk-Adjusted Performance

Very Weak

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

Track Field

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Track Field Co are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Track Field unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Itasa Investimentos and Track Field

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

The idea behind Itasa Investimentos and Track Field Co 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.