Correlation Between Minupar Participaes and Archer Daniels

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

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

Diversification Opportunities for Minupar Participaes and Archer Daniels

-0.26

Correlation Coefficient

Minupar Participaes  Archer Daniels

Very good diversification

The 3 months correlation between Minupar and Archer is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Minupar Participaes SA and Archer Daniels Midland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archer Daniels Midland and Minupar Participaes 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 Minupar Participaes SA are associated (or correlated) with Archer Daniels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archer Daniels Midland has no effect on the direction of Minupar Participaes i.e., Minupar Participaes and Archer Daniels go up and down completely randomly.

Pair Corralation between Minupar Participaes and Archer Daniels

Assuming the 90 days trading horizon Minupar Participaes is expected to generate 1.28 times less return on investment than Archer Daniels. In addition to that, Minupar Participaes is 2.14 times more volatile than Archer Daniels Midland. It trades about 0.03 of its total potential returns per unit of risk. Archer Daniels Midland is currently generating about 0.08 per unit of volatility. If you would invest  27,743  in Archer Daniels Midland on April 20, 2025 and sell it today you would earn a total of  2,497  from holding Archer Daniels Midland or generate 9.0% return on investment over 90 days.

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

Minupar Participaes SA  vs.  Archer Daniels Midland

Minupar Participaes

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Minupar Participaes SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Minupar Participaes may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Archer Daniels Midland

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Archer Daniels Midland are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Archer Daniels may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Minupar Participaes and Archer Daniels

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

The idea behind Minupar Participaes SA and Archer Daniels Midland 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.