Correlation Between LOG Commercial and Cruzeiro

Can any of the company-specific risk be diversified away by investing in both LOG Commercial and Cruzeiro 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 Cruzeiro 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 Cruzeiro do Sul, you can compare the effects of market volatilities on LOG Commercial and Cruzeiro 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 Cruzeiro. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOG Commercial and Cruzeiro.

Diversification Opportunities for LOG Commercial and Cruzeiro

0.0

Correlation Coefficient

LOG Commercial  Cruzeiro

Pay attention - limited upside

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

Pair Corralation between LOG Commercial and Cruzeiro

If you would invest  1,917  in LOG Commercial Properties on April 22, 2025 and sell it today you would earn a total of  62.00  from holding LOG Commercial Properties or generate 3.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

LOG Commercial Properties  vs.  Cruzeiro do Sul

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Cruzeiro do Sul

Risk-Adjusted Performance

Good

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

Pair Trading with LOG Commercial and Cruzeiro

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

The idea behind LOG Commercial Properties and Cruzeiro do Sul 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.