Correlation Between Af Invest and WHG REAL
Can any of the company-specific risk be diversified away by investing in both Af Invest and WHG REAL 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 Af Invest and WHG REAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Af Invest Cri and WHG REAL ESTATE, you can compare the effects of market volatilities on Af Invest and WHG REAL 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 Af Invest with a short position of WHG REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Af Invest and WHG REAL.
Diversification Opportunities for Af Invest and WHG REAL
Very poor diversification
The 3 months correlation between AFHI11 and WHG is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Af Invest Cri and WHG REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHG REAL ESTATE and Af Invest 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 Af Invest Cri are associated (or correlated) with WHG REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHG REAL ESTATE has no effect on the direction of Af Invest i.e., Af Invest and WHG REAL go up and down completely randomly.
Pair Corralation between Af Invest and WHG REAL
Assuming the 90 days trading horizon Af Invest Cri is expected to generate 0.48 times more return on investment than WHG REAL. However, Af Invest Cri is 2.1 times less risky than WHG REAL. It trades about -0.14 of its potential returns per unit of risk. WHG REAL ESTATE is currently generating about -0.08 per unit of risk. If you would invest 9,605 in Af Invest Cri on September 12, 2024 and sell it today you would lose (710.00) from holding Af Invest Cri or give up 7.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Af Invest Cri vs. WHG REAL ESTATE
Performance |
| Timeline |
| Af Invest Cri |
| WHG REAL ESTATE |
Af Invest and WHG REAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Af Invest and WHG REAL
The main advantage of trading using opposite Af Invest and WHG REAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Af Invest position performs unexpectedly, WHG REAL 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 WHG REAL will offset losses from the drop in WHG REAL's long position.| Af Invest vs. V2 Recebveis Imobilirios | Af Invest vs. CF3 FUNDO DE | Af Invest vs. HUSI11 | Af Invest vs. SDI Logstica Rio |
| WHG REAL vs. CSHG Real Estate | WHG REAL vs. JS Real Estate | WHG REAL vs. PANORAMA REAL ESTATE | WHG REAL vs. Trx Real Estate |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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