Correlation Between Ultrapar Participacoes and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Ultrapar Participacoes and Mid Cap 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 Ultrapar Participacoes and Mid Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultrapar Participacoes SA and Mid Cap Value, you can compare the effects of market volatilities on Ultrapar Participacoes and Mid Cap 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 Ultrapar Participacoes with a short position of Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultrapar Participacoes and Mid Cap.
Diversification Opportunities for Ultrapar Participacoes and Mid Cap
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ultrapar and Mid is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ultrapar Participacoes SA and Mid Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Value and Ultrapar Participacoes 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 Ultrapar Participacoes SA are associated (or correlated) with Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Value has no effect on the direction of Ultrapar Participacoes i.e., Ultrapar Participacoes and Mid Cap go up and down completely randomly.
Pair Corralation between Ultrapar Participacoes and Mid Cap
Considering the 90-day investment horizon Ultrapar Participacoes SA is expected to generate 3.21 times more return on investment than Mid Cap. However, Ultrapar Participacoes is 3.21 times more volatile than Mid Cap Value. It trades about 0.16 of its potential returns per unit of risk. Mid Cap Value is currently generating about 0.17 per unit of risk. If you would invest 285.00 in Ultrapar Participacoes SA on June 4, 2025 and sell it today you would earn a total of 74.00 from holding Ultrapar Participacoes SA or generate 25.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Ultrapar Participacoes SA vs. Mid Cap Value
Performance |
| Timeline |
| Ultrapar Participacoes |
| Mid Cap Value |
Ultrapar Participacoes and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultrapar Participacoes and Mid Cap
The main advantage of trading using opposite Ultrapar Participacoes and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultrapar Participacoes position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap's long position.| Ultrapar Participacoes vs. Cosan SA ADR | Ultrapar Participacoes vs. Neste Oyj | Ultrapar Participacoes vs. Star Gas Partners | Ultrapar Participacoes vs. Valvoline |
| Mid Cap vs. Prudential Qma Large Cap | Mid Cap vs. Legg Mason Bw | Mid Cap vs. Vanguard Large Cap Index | Mid Cap vs. Siit Large Cap |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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