Correlation Between Neogrid Participaes and Infracommerce CXaaS

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

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

Diversification Opportunities for Neogrid Participaes and Infracommerce CXaaS

-0.66

Correlation Coefficient

Neogrid Participaes  Infracommerce CXaaS

Excellent diversification

The 3 months correlation between Neogrid and Infracommerce is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Neogrid Participaes SA and Infracommerce CXaaS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infracommerce CXaaS and Neogrid 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 Neogrid Participaes SA are associated (or correlated) with Infracommerce CXaaS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infracommerce CXaaS has no effect on the direction of Neogrid Participaes i.e., Neogrid Participaes and Infracommerce CXaaS go up and down completely randomly.

Pair Corralation between Neogrid Participaes and Infracommerce CXaaS

Assuming the 90 days trading horizon Neogrid Participaes SA is expected to generate 0.42 times more return on investment than Infracommerce CXaaS. However, Neogrid Participaes SA is 2.41 times less risky than Infracommerce CXaaS. It trades about 0.11 of its potential returns per unit of risk. Infracommerce CXaaS SA is currently generating about -0.09 per unit of risk. If you would invest  2,030  in Neogrid Participaes SA on April 24, 2025 and sell it today you would earn a total of  524.00  from holding Neogrid Participaes SA or generate 25.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Neogrid Participaes SA  vs.  Infracommerce CXaaS SA

Neogrid Participaes

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Neogrid Participaes SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Neogrid Participaes unveiled solid returns over the last few months and may actually be approaching a breakup point.

Infracommerce CXaaS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Infracommerce CXaaS SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Neogrid Participaes and Infracommerce CXaaS

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

The idea behind Neogrid Participaes SA and Infracommerce CXaaS 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.