Correlation Between Azaria Rental and Prosegur Cash

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

By analyzing existing cross correlation between Azaria Rental SOCIMI and Prosegur Cash SA, you can compare the effects of market volatilities on Azaria Rental and Prosegur Cash 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 Azaria Rental with a short position of Prosegur Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azaria Rental and Prosegur Cash.

Diversification Opportunities for Azaria Rental and Prosegur Cash

0.0

Correlation Coefficient

Azaria Rental  Prosegur Cash

Pay attention - limited upside

The 3 months correlation between Azaria and Prosegur is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Azaria Rental SOCIMI and Prosegur Cash SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosegur Cash SA and Azaria Rental 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 Azaria Rental SOCIMI are associated (or correlated) with Prosegur Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosegur Cash SA has no effect on the direction of Azaria Rental i.e., Azaria Rental and Prosegur Cash go up and down completely randomly.

Pair Corralation between Azaria Rental and Prosegur Cash

If you would invest  75.00  in Prosegur Cash SA on April 25, 2025 and sell it today you would earn a total of  10.00  from holding Prosegur Cash SA or generate 13.33% return on investment over 90 days.

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

Azaria Rental SOCIMI  vs.  Prosegur Cash SA

Azaria Rental SOCIMI

Risk-Adjusted Performance

Very Weak

Over the last 90 days Azaria Rental SOCIMI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Azaria Rental is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Prosegur Cash SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Prosegur Cash SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Prosegur Cash exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Azaria Rental and Prosegur Cash

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

The idea behind Azaria Rental SOCIMI and Prosegur Cash 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.

Check out your portfolio center.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.