Correlation Between LOG Commercial and Multiplan Empreendimentos

Can any of the company-specific risk be diversified away by investing in both LOG Commercial and Multiplan Empreendimentos 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 LOG Commercial and Multiplan Empreendimentos into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LOG Commercial Properties and Multiplan Empreendimentos Imobilirios, you can compare the effects of market volatilities on LOG Commercial and Multiplan Empreendimentos 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 LOG Commercial with a short position of Multiplan Empreendimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOG Commercial and Multiplan Empreendimentos.

Diversification Opportunities for LOG Commercial and Multiplan Empreendimentos

0.12

Correlation Coefficient

LOG Commercial  Multiplan Empreendimentos

Average diversification

The 3 months correlation between LOG and Multiplan is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding LOG Commercial Properties and Multiplan Empreendimentos Imob in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multiplan Empreendimentos and LOG Commercial 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 LOG Commercial Properties are associated (or correlated) with Multiplan Empreendimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multiplan Empreendimentos has no effect on the direction of LOG Commercial i.e., LOG Commercial and Multiplan Empreendimentos go up and down completely randomly.

Pair Corralation between LOG Commercial and Multiplan Empreendimentos

Assuming the 90 days trading horizon LOG Commercial Properties is expected to under-perform the Multiplan Empreendimentos. In addition to that, LOG Commercial is 1.23 times more volatile than Multiplan Empreendimentos Imobilirios. It trades about -0.01 of its total potential returns per unit of risk. Multiplan Empreendimentos Imobilirios is currently generating about 0.03 per unit of volatility. If you would invest  2,609  in Multiplan Empreendimentos Imobilirios on May 17, 2025 and sell it today you would earn a total of  42.00  from holding Multiplan Empreendimentos Imobilirios or generate 1.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

LOG Commercial Properties  vs.  Multiplan Empreendimentos Imob

LOG Commercial Properties

Risk-Adjusted Performance

Weakest

Over the last 90 days LOG Commercial Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, LOG Commercial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Multiplan Empreendimentos

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Multiplan Empreendimentos Imobilirios are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Multiplan Empreendimentos is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with LOG Commercial and Multiplan Empreendimentos

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

The idea behind LOG Commercial Properties and Multiplan Empreendimentos Imobilirios 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.

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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.