Correlation Between FDO INV and Kinea High
Can any of the company-specific risk be diversified away by investing in both FDO INV and Kinea High 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 Kinea High 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 Kinea High Yield, you can compare the effects of market volatilities on FDO INV and Kinea High 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 Kinea High. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDO INV and Kinea High.
Diversification Opportunities for FDO INV and Kinea High
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FDO and Kinea is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding FDO INV IMOB and Kinea High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea High Yield 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 Kinea High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea High Yield has no effect on the direction of FDO INV i.e., FDO INV and Kinea High go up and down completely randomly.
Pair Corralation between FDO INV and Kinea High
Assuming the 90 days trading horizon FDO INV IMOB is expected to generate 0.05 times more return on investment than Kinea High. However, FDO INV IMOB is 21.55 times less risky than Kinea High. It trades about 0.22 of its potential returns per unit of risk. Kinea High Yield is currently generating about -0.18 per unit of risk. If you would invest 144,650 in FDO INV IMOB on September 13, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FDO INV IMOB vs. Kinea High Yield
Performance |
| Timeline |
| FDO INV IMOB |
| Kinea High Yield |
FDO INV and Kinea High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDO INV and Kinea High
The main advantage of trading using opposite FDO INV and Kinea High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDO INV position performs unexpectedly, Kinea High 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 Kinea High will offset losses from the drop in Kinea High's long position.| FDO INV vs. JPP Allocation Mogno | FDO INV vs. Domo Fundo de | FDO INV vs. XP Selection Fundo | FDO INV vs. Kinea Hedge Fund |
| Kinea High vs. BTG Pactual Logstica | Kinea High vs. Plano Plano Desenvolvimento | Kinea High vs. Companhia Habitasul de | Kinea High 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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