Correlation Between ATMA Participaes and FDO INV
Can any of the company-specific risk be diversified away by investing in both ATMA Participaes and FDO INV 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 ATMA Participaes and FDO INV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATMA Participaes SA and FDO INV IMOB, you can compare the effects of market volatilities on ATMA Participaes and FDO INV 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 ATMA Participaes with a short position of FDO INV. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATMA Participaes and FDO INV.
Diversification Opportunities for ATMA Participaes and FDO INV
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATMA and FDO is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ATMA Participaes SA and FDO INV IMOB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDO INV IMOB and ATMA Participaes 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 ATMA Participaes SA are associated (or correlated) with FDO INV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDO INV IMOB has no effect on the direction of ATMA Participaes i.e., ATMA Participaes and FDO INV go up and down completely randomly.
Pair Corralation between ATMA Participaes and FDO INV
Assuming the 90 days trading horizon ATMA Participaes is expected to generate 42.23 times less return on investment than FDO INV. But when comparing it to its historical volatility, ATMA Participaes SA is 13.12 times less risky than FDO INV. It trades about 0.02 of its potential returns per unit of risk. FDO INV IMOB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 20.00 in FDO INV IMOB on September 14, 2024 and sell it today you would earn a total of 144,980 from holding FDO INV IMOB or generate 724900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 48.7% |
| Values | Daily Returns |
ATMA Participaes SA vs. FDO INV IMOB
Performance |
| Timeline |
| ATMA Participaes |
| FDO INV IMOB |
ATMA Participaes and FDO INV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATMA Participaes and FDO INV
The main advantage of trading using opposite ATMA Participaes and FDO INV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATMA Participaes position performs unexpectedly, FDO INV 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 FDO INV will offset losses from the drop in FDO INV's long position.| ATMA Participaes vs. Triunfo Participaes e | ATMA Participaes vs. Allpark Empreendimentos Participaes | ATMA Participaes vs. Azevedo Travassos SA | ATMA Participaes vs. Azevedo Travassos SA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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