Correlation Between FDO INV and CSHG Real
Can any of the company-specific risk be diversified away by investing in both FDO INV and CSHG 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 FDO INV and CSHG Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDO INV IMOB and CSHG Real Estate, you can compare the effects of market volatilities on FDO INV and CSHG 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 FDO INV with a short position of CSHG Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDO INV and CSHG Real.
Diversification Opportunities for FDO INV and CSHG Real
Good diversification
The 3 months correlation between FDO and CSHG is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding FDO INV IMOB and CSHG Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSHG Real Estate and FDO INV 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 FDO INV IMOB are associated (or correlated) with CSHG Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSHG Real Estate has no effect on the direction of FDO INV i.e., FDO INV and CSHG Real go up and down completely randomly.
Pair Corralation between FDO INV and CSHG Real
Assuming the 90 days trading horizon FDO INV IMOB is expected to generate 0.03 times more return on investment than CSHG Real. However, FDO INV IMOB is 34.26 times less risky than CSHG Real. It trades about 0.22 of its potential returns per unit of risk. CSHG Real Estate is currently generating about -0.18 per unit of risk. If you would invest 144,650 in FDO INV IMOB on September 12, 2024 and sell it today you would earn a total of 350.00 from holding FDO INV IMOB or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
FDO INV IMOB vs. CSHG Real Estate
Performance |
| Timeline |
| FDO INV IMOB |
| CSHG Real Estate |
FDO INV and CSHG Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDO INV and CSHG Real
The main advantage of trading using opposite FDO INV and CSHG Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDO INV position performs unexpectedly, CSHG 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 CSHG Real will offset losses from the drop in CSHG Real's long position.| FDO INV vs. BTG Pactual Logstica | FDO INV vs. Plano Plano Desenvolvimento | FDO INV vs. Companhia Habitasul de | FDO INV vs. Telefonaktiebolaget LM Ericsson |
| CSHG Real vs. CSHG Recebiveis Imobiliarios | CSHG Real vs. CSHG Imobiliario Fof | CSHG Real vs. CSHG Renda Urbana | CSHG Real vs. FDO INV IMOB |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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