Correlation Between Companhia Brasileira and Maisons Du

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Can any of the company-specific risk be diversified away by investing in both Companhia Brasileira and Maisons Du 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 Companhia Brasileira and Maisons Du into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Companhia Brasileira De and Maisons Du Monde, you can compare the effects of market volatilities on Companhia Brasileira and Maisons Du 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 Companhia Brasileira with a short position of Maisons Du. Check out your portfolio center. Please also check ongoing floating volatility patterns of Companhia Brasileira and Maisons Du.

Diversification Opportunities for Companhia Brasileira and Maisons Du

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Companhia Brasileira and Maisons Du

If you would invest  63.00  in Companhia Brasileira De on August 29, 2025 and sell it today you would earn a total of  12.00  from holding Companhia Brasileira De or generate 19.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

Companhia Brasileira De  vs.  Maisons Du Monde

 Performance 
       Timeline  
Companhia Brasileira 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Companhia Brasileira De are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental drivers, Companhia Brasileira showed solid returns over the last few months and may actually be approaching a breakup point.
Maisons Du Monde 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Maisons Du Monde has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Maisons Du is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Companhia Brasileira and Maisons Du Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Companhia Brasileira and Maisons Du

The main advantage of trading using opposite Companhia Brasileira and Maisons Du positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Companhia Brasileira position performs unexpectedly, Maisons Du 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 Maisons Du will offset losses from the drop in Maisons Du's long position.
The idea behind Companhia Brasileira De and Maisons Du Monde 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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