Correlation Between Triunfo Participaes and ATMA Participaes

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

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

Diversification Opportunities for Triunfo Participaes and ATMA Participaes

0.22

Correlation Coefficient

Triunfo Participaes  ATMA Participaes

Modest diversification

The 3 months correlation between Triunfo and ATMA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Triunfo Participaes e and ATMA Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMA Participaes and Triunfo 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 Triunfo Participaes e are associated (or correlated) with ATMA Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMA Participaes has no effect on the direction of Triunfo Participaes i.e., Triunfo Participaes and ATMA Participaes go up and down completely randomly.

Pair Corralation between Triunfo Participaes and ATMA Participaes

Assuming the 90 days trading horizon Triunfo Participaes e is expected to under-perform the ATMA Participaes. But the stock apears to be less risky and, when comparing its historical volatility, Triunfo Participaes e is 2.34 times less risky than ATMA Participaes. The stock trades about -0.04 of its potential returns per unit of risk. The ATMA Participaes SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  121.00  in ATMA Participaes SA on April 22, 2025 and sell it today you would lose (9.00) from holding ATMA Participaes SA or give up 7.44% of portfolio value over 90 days.

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

Triunfo Participaes e  vs.  ATMA Participaes SA

Triunfo Participaes

Risk-Adjusted Performance

Very Weak

Over the last 90 days Triunfo Participaes e has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Triunfo Participaes is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ATMA Participaes

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATMA Participaes SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ATMA Participaes is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Triunfo Participaes and ATMA Participaes

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

The idea behind Triunfo Participaes e and ATMA Participaes 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.