Correlation Between Bresco Fundo and Fundo Investimento
Can any of the company-specific risk be diversified away by investing in both Bresco Fundo and Fundo Investimento 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 Bresco Fundo and Fundo Investimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bresco Fundo and Fundo Investimento Imobiliario, you can compare the effects of market volatilities on Bresco Fundo and Fundo Investimento 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 Bresco Fundo with a short position of Fundo Investimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bresco Fundo and Fundo Investimento.
Diversification Opportunities for Bresco Fundo and Fundo Investimento
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bresco and Fundo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bresco Fundo and Fundo Investimento Imobiliario in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundo Investimento and Bresco Fundo 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 Bresco Fundo are associated (or correlated) with Fundo Investimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundo Investimento has no effect on the direction of Bresco Fundo i.e., Bresco Fundo and Fundo Investimento go up and down completely randomly.
Pair Corralation between Bresco Fundo and Fundo Investimento
Assuming the 90 days trading horizon Bresco Fundo is expected to under-perform the Fundo Investimento. But the fund apears to be less risky and, when comparing its historical volatility, Bresco Fundo is 1.49 times less risky than Fundo Investimento. The fund trades about -0.26 of its potential returns per unit of risk. The Fundo Investimento Imobiliario is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 9,013 in Fundo Investimento Imobiliario on September 12, 2024 and sell it today you would lose (1,063) from holding Fundo Investimento Imobiliario or give up 11.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bresco Fundo vs. Fundo Investimento Imobiliario
Performance |
| Timeline |
| Bresco Fundo |
| Fundo Investimento |
Bresco Fundo and Fundo Investimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bresco Fundo and Fundo Investimento
The main advantage of trading using opposite Bresco Fundo and Fundo Investimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bresco Fundo position performs unexpectedly, Fundo Investimento 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 Fundo Investimento will offset losses from the drop in Fundo Investimento's long position.| Bresco Fundo vs. BTG Pactual Logstica | Bresco Fundo vs. Plano Plano Desenvolvimento | Bresco Fundo vs. Companhia Habitasul de | Bresco Fundo vs. FDO INV IMOB |
| Fundo Investimento vs. JFL Living Fundo | Fundo Investimento vs. Maxi Renda Fundo | Fundo Investimento vs. Ourinvest Jpp Fundo | Fundo Investimento vs. Tordesilhas Ei Fundo |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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