Correlation Between Ultrapar Participacoes and Pro-blend(r) Conservative
Can any of the company-specific risk be diversified away by investing in both Ultrapar Participacoes and Pro-blend(r) Conservative 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 Pro-blend(r) Conservative 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 Pro Blend Servative Term, you can compare the effects of market volatilities on Ultrapar Participacoes and Pro-blend(r) Conservative 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 Pro-blend(r) Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultrapar Participacoes and Pro-blend(r) Conservative.
Diversification Opportunities for Ultrapar Participacoes and Pro-blend(r) Conservative
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ultrapar and Pro-blend(r) is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ultrapar Participacoes SA and Pro Blend Servative Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Conservative 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 Pro-blend(r) Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Conservative has no effect on the direction of Ultrapar Participacoes i.e., Ultrapar Participacoes and Pro-blend(r) Conservative go up and down completely randomly.
Pair Corralation between Ultrapar Participacoes and Pro-blend(r) Conservative
Considering the 90-day investment horizon Ultrapar Participacoes SA is expected to generate 10.13 times more return on investment than Pro-blend(r) Conservative. However, Ultrapar Participacoes is 10.13 times more volatile than Pro Blend Servative Term. It trades about 0.12 of its potential returns per unit of risk. Pro Blend Servative Term is currently generating about 0.19 per unit of risk. If you would invest 292.00 in Ultrapar Participacoes SA on May 29, 2025 and sell it today you would earn a total of 52.00 from holding Ultrapar Participacoes SA or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultrapar Participacoes SA vs. Pro Blend Servative Term
Performance |
| Timeline |
| Ultrapar Participacoes |
| Pro-blend(r) Conservative |
Ultrapar Participacoes and Pro-blend(r) Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultrapar Participacoes and Pro-blend(r) Conservative
The main advantage of trading using opposite Ultrapar Participacoes and Pro-blend(r) Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultrapar Participacoes position performs unexpectedly, Pro-blend(r) Conservative 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 Pro-blend(r) Conservative will offset losses from the drop in Pro-blend(r) Conservative's long position.| Ultrapar Participacoes vs. Cosan SA ADR | Ultrapar Participacoes vs. Neste Oyj | Ultrapar Participacoes vs. Star Gas Partners | Ultrapar Participacoes vs. Valvoline |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |