Correlation Between Cia De and Vitruvio Real

Can any of the company-specific risk be diversified away by investing in both Cia De and Vitruvio Real 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 Vitruvio Real 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 Vitruvio Real Estate, you can compare the effects of market volatilities on Cia De and Vitruvio Real 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 Vitruvio Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cia De and Vitruvio Real.

Diversification Opportunities for Cia De and Vitruvio Real

-0.55

Correlation Coefficient

Cia De  Vitruvio Real

Excellent diversification

The 3 months correlation between Cia and Vitruvio is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cia de Distribucion and Vitruvio Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitruvio Real Estate 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 Vitruvio Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitruvio Real Estate has no effect on the direction of Cia De i.e., Cia De and Vitruvio Real go up and down completely randomly.

Pair Corralation between Cia De and Vitruvio Real

Assuming the 90 days trading horizon Cia de Distribucion is expected to under-perform the Vitruvio Real. In addition to that, Cia De is 1.96 times more volatile than Vitruvio Real Estate. It trades about -0.09 of its total potential returns per unit of risk. Vitruvio Real Estate is currently generating about 0.09 per unit of volatility. If you would invest  1,516  in Vitruvio Real Estate on April 24, 2025 and sell it today you would earn a total of  54.00  from holding Vitruvio Real Estate or generate 3.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Cia de Distribucion  vs.  Vitruvio Real Estate

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 latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Vitruvio Real Estate

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vitruvio Real Estate are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Vitruvio Real is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cia De and Vitruvio Real

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

The idea behind Cia de Distribucion and Vitruvio Real Estate 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.