Correlation Between Cia De and Mapfre

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

By analyzing existing cross correlation between Cia de Distribucion and Mapfre, you can compare the effects of market volatilities on Cia De and Mapfre 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 Cia De with a short position of Mapfre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cia De and Mapfre.

Diversification Opportunities for Cia De and Mapfre

0.0

Correlation Coefficient

Cia De  Mapfre

Pay attention - limited upside

The 3 months correlation between Cia and Mapfre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cia de Distribucion and Mapfre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapfre and Cia De 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 Cia de Distribucion are associated (or correlated) with Mapfre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapfre has no effect on the direction of Cia De i.e., Cia De and Mapfre go up and down completely randomly.

Pair Corralation between Cia De and Mapfre

If you would invest  286.00  in Mapfre on April 22, 2025 and sell it today you would earn a total of  59.00  from holding Mapfre or generate 20.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cia de Distribucion  vs.  Mapfre

Cia de Distribucion

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cia de Distribucion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Cia De is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Mapfre

Risk-Adjusted Performance

Good

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

Pair Trading with Cia De and Mapfre

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

The idea behind Cia de Distribucion and Mapfre 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.