Correlation Between Plano Plano and ASA METROPOLIS

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

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

Diversification Opportunities for Plano Plano and ASA METROPOLIS

-0.64

Correlation Coefficient

Plano Plano  ASA METROPOLIS

Excellent diversification

The 3 months correlation between Plano and ASA is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Plano Plano Desenvolvimento and ASA METROPOLIS FUNDO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASA METROPOLIS FUNDO and Plano Plano 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 Plano Plano Desenvolvimento are associated (or correlated) with ASA METROPOLIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASA METROPOLIS FUNDO has no effect on the direction of Plano Plano i.e., Plano Plano and ASA METROPOLIS go up and down completely randomly.

Pair Corralation between Plano Plano and ASA METROPOLIS

Assuming the 90 days trading horizon Plano Plano Desenvolvimento is expected to generate 0.23 times more return on investment than ASA METROPOLIS. However, Plano Plano Desenvolvimento is 4.35 times less risky than ASA METROPOLIS. It trades about 0.11 of its potential returns per unit of risk. ASA METROPOLIS FUNDO is currently generating about -0.1 per unit of risk. If you would invest  1,154  in Plano Plano Desenvolvimento on April 25, 2025 and sell it today you would earn a total of  195.00  from holding Plano Plano Desenvolvimento or generate 16.9% return on investment over 90 days.

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

Plano Plano Desenvolvimento  vs.  ASA METROPOLIS FUNDO

Plano Plano Desenvol

Risk-Adjusted Performance

Modest

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

ASA METROPOLIS FUNDO

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASA METROPOLIS FUNDO has generated negative risk-adjusted returns adding no value to fund investors. Despite weak performance in the last few months, the Fund's primary indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Plano Plano and ASA METROPOLIS

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

The idea behind Plano Plano Desenvolvimento and ASA METROPOLIS FUNDO 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.