Correlation Between Dimed SA and Ambipar Participaes

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

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

Diversification Opportunities for Dimed SA and Ambipar Participaes

-0.26

Correlation Coefficient

Dimed SA  Ambipar Participaes

Very good diversification

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

Pair Corralation between Dimed SA and Ambipar Participaes

Assuming the 90 days trading horizon Dimed SA is expected to generate 1.5 times less return on investment than Ambipar Participaes. But when comparing it to its historical volatility, Dimed SA Distribuidora is 2.69 times less risky than Ambipar Participaes. It trades about 0.04 of its potential returns per unit of risk. Ambipar Participaes e is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  14,175  in Ambipar Participaes e on April 25, 2025 and sell it today you would earn a total of  110.00  from holding Ambipar Participaes e or generate 0.78% return on investment over 90 days.

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

Dimed SA Distribuidora  vs.  Ambipar Participaes e

Dimed SA Distribuidora

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dimed SA Distribuidora are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Dimed SA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Ambipar Participaes

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ambipar Participaes e are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Ambipar Participaes may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Dimed SA and Ambipar Participaes

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

The idea behind Dimed SA Distribuidora and Ambipar Participaes e 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.