Correlation Between Palantir Technologies and Marisa Lojas

Can any of the company-specific risk be diversified away by investing in both Palantir Technologies and Marisa Lojas 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 Palantir Technologies and Marisa Lojas into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Palantir Technologies and Marisa Lojas SA, you can compare the effects of market volatilities on Palantir Technologies and Marisa Lojas 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 Palantir Technologies with a short position of Marisa Lojas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and Marisa Lojas.

Diversification Opportunities for Palantir Technologies and Marisa Lojas

-0.09

Correlation Coefficient

Palantir Technologies  Marisa Lojas

Good diversification

The 3 months correlation between Palantir and Marisa is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies and Marisa Lojas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marisa Lojas SA and Palantir Technologies 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 Palantir Technologies are associated (or correlated) with Marisa Lojas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marisa Lojas SA has no effect on the direction of Palantir Technologies i.e., Palantir Technologies and Marisa Lojas go up and down completely randomly.

Pair Corralation between Palantir Technologies and Marisa Lojas

Assuming the 90 days trading horizon Palantir Technologies is expected to generate 1.11 times less return on investment than Marisa Lojas. But when comparing it to its historical volatility, Palantir Technologies is 4.09 times less risky than Marisa Lojas. It trades about 0.07 of its potential returns per unit of risk. Marisa Lojas SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,005  in Marisa Lojas SA on January 29, 2024 and sell it today you would lose (850.00) from holding Marisa Lojas SA or give up 84.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Palantir Technologies  vs.  Marisa Lojas SA

Palantir Technologies

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Palantir Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Palantir Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Marisa Lojas SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marisa Lojas SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Palantir Technologies and Marisa Lojas

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

The idea behind Palantir Technologies and Marisa Lojas SA 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 Commodity Directory module to find actively traded commodities issued by global exchanges.