Correlation Between Mapfre and Prosegur

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

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

Diversification Opportunities for Mapfre and Prosegur

0.6

Correlation Coefficient

Mapfre  Prosegur

Poor diversification

The 3 months correlation between Mapfre and Prosegur is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Mapfre and Prosegur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosegur and Mapfre 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 Mapfre are associated (or correlated) with Prosegur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosegur has no effect on the direction of Mapfre i.e., Mapfre and Prosegur go up and down completely randomly.

Pair Corralation between Mapfre and Prosegur

Assuming the 90 days trading horizon Mapfre is expected to generate 2.85 times less return on investment than Prosegur. But when comparing it to its historical volatility, Mapfre is 1.52 times less risky than Prosegur. It trades about 0.14 of its potential returns per unit of risk. Prosegur is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  226.00  in Prosegur on April 25, 2025 and sell it today you would earn a total of  76.00  from holding Prosegur or generate 33.63% return on investment over 90 days.

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

Mapfre  vs.  Prosegur

Mapfre

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mapfre are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Mapfre may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Prosegur

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Prosegur are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Prosegur exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mapfre and Prosegur

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

The idea behind Mapfre and Prosegur 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.