Correlation Between Fundo De and Credit Acceptance
Can any of the company-specific risk be diversified away by investing in both Fundo De and Credit Acceptance 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 Fundo De and Credit Acceptance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundo de Investimento and Credit Acceptance, you can compare the effects of market volatilities on Fundo De and Credit Acceptance 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 Fundo De with a short position of Credit Acceptance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo De and Credit Acceptance.
Diversification Opportunities for Fundo De and Credit Acceptance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fundo and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fundo de Investimento and Credit Acceptance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Acceptance and Fundo De 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 Fundo de Investimento are associated (or correlated) with Credit Acceptance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Acceptance has no effect on the direction of Fundo De i.e., Fundo De and Credit Acceptance go up and down completely randomly.
Pair Corralation between Fundo De and Credit Acceptance
Assuming the 90 days trading horizon Fundo De is expected to generate 3.14 times less return on investment than Credit Acceptance. But when comparing it to its historical volatility, Fundo de Investimento is 1.25 times less risky than Credit Acceptance. It trades about 0.01 of its potential returns per unit of risk. Credit Acceptance is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 25,800 in Credit Acceptance on August 30, 2024 and sell it today you would earn a total of 6,700 from holding Credit Acceptance or generate 25.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Fundo de Investimento vs. Credit Acceptance
Performance |
| Timeline |
| Fundo de Investimento |
| Credit Acceptance |
Fundo De and Credit Acceptance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundo De and Credit Acceptance
The main advantage of trading using opposite Fundo De and Credit Acceptance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundo De position performs unexpectedly, Credit Acceptance 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 Credit Acceptance will offset losses from the drop in Credit Acceptance's long position.| Fundo De vs. Fundo Investimento Imobiliario | Fundo De vs. Fundo De Investimentos | Fundo De vs. Fundo Invest Imobiliario | Fundo De vs. Fundo de Investimento |
| Credit Acceptance vs. Extra Space Storage | Credit Acceptance vs. Warner Music Group | Credit Acceptance vs. GP Investments | Credit Acceptance vs. G2D Investments |
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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