Correlation Between LOG Commercial and Camil Alimentos

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

By analyzing existing cross correlation between LOG Commercial Properties and Camil Alimentos SA, you can compare the effects of market volatilities on LOG Commercial and Camil Alimentos 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 LOG Commercial with a short position of Camil Alimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOG Commercial and Camil Alimentos.

Diversification Opportunities for LOG Commercial and Camil Alimentos

0.42

Correlation Coefficient

LOG Commercial  Camil Alimentos

Very weak diversification

The 3 months correlation between LOG and Camil is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding LOG Commercial Properties and Camil Alimentos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camil Alimentos SA and LOG Commercial 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 LOG Commercial Properties are associated (or correlated) with Camil Alimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camil Alimentos SA has no effect on the direction of LOG Commercial i.e., LOG Commercial and Camil Alimentos go up and down completely randomly.

Pair Corralation between LOG Commercial and Camil Alimentos

Assuming the 90 days trading horizon LOG Commercial Properties is expected to generate 0.9 times more return on investment than Camil Alimentos. However, LOG Commercial Properties is 1.12 times less risky than Camil Alimentos. It trades about 0.01 of its potential returns per unit of risk. Camil Alimentos SA is currently generating about -0.07 per unit of risk. If you would invest  1,953  in LOG Commercial Properties on April 22, 2025 and sell it today you would earn a total of  26.00  from holding LOG Commercial Properties or generate 1.33% return on investment over 90 days.

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

LOG Commercial Properties  vs.  Camil Alimentos SA

LOG Commercial Properties

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LOG Commercial Properties are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, LOG Commercial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Camil Alimentos SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Camil Alimentos SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Camil Alimentos unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LOG Commercial and Camil Alimentos

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

The idea behind LOG Commercial Properties and Camil Alimentos 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.