Correlation Between Ultrapar Participacoes and Touchstone Large
Can any of the company-specific risk be diversified away by investing in both Ultrapar Participacoes and Touchstone Large 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 Touchstone Large 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 Touchstone Large Cap, you can compare the effects of market volatilities on Ultrapar Participacoes and Touchstone Large 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 Touchstone Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultrapar Participacoes and Touchstone Large.
Diversification Opportunities for Ultrapar Participacoes and Touchstone Large
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ultrapar and Touchstone is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ultrapar Participacoes SA and Touchstone Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Large Cap 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 Touchstone Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Large Cap has no effect on the direction of Ultrapar Participacoes i.e., Ultrapar Participacoes and Touchstone Large go up and down completely randomly.
Pair Corralation between Ultrapar Participacoes and Touchstone Large
Considering the 90-day investment horizon Ultrapar Participacoes SA is expected to generate 3.81 times more return on investment than Touchstone Large. However, Ultrapar Participacoes is 3.81 times more volatile than Touchstone Large Cap. It trades about 0.15 of its potential returns per unit of risk. Touchstone Large Cap is currently generating about 0.15 per unit of risk. If you would invest 293.00 in Ultrapar Participacoes SA on June 7, 2025 and sell it today you would earn a total of 70.00 from holding Ultrapar Participacoes SA or generate 23.89% 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. Touchstone Large Cap
Performance |
| Timeline |
| Ultrapar Participacoes |
| Touchstone Large Cap |
Ultrapar Participacoes and Touchstone Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultrapar Participacoes and Touchstone Large
The main advantage of trading using opposite Ultrapar Participacoes and Touchstone Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultrapar Participacoes position performs unexpectedly, Touchstone Large 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 Touchstone Large will offset losses from the drop in Touchstone Large's long position.| Ultrapar Participacoes vs. Delek Energy | Ultrapar Participacoes vs. Sunoco LP | Ultrapar Participacoes vs. CVR Energy | Ultrapar Participacoes vs. Phillips 66 |
| Touchstone Large vs. Fidelity Advisor Health | Touchstone Large vs. Invesco Global Health | Touchstone Large vs. Invesco Global Health | Touchstone Large vs. Putnam Global Health |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |