Correlation Between FDO INV and Xp Malls
Can any of the company-specific risk be diversified away by investing in both FDO INV and Xp Malls 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 Xp Malls 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 Xp Malls Fundo, you can compare the effects of market volatilities on FDO INV and Xp Malls 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 Xp Malls. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDO INV and Xp Malls.
Diversification Opportunities for FDO INV and Xp Malls
Excellent diversification
The 3 months correlation between FDO and XPML11 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding FDO INV IMOB and Xp Malls Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Malls Fundo 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 Xp Malls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Malls Fundo has no effect on the direction of FDO INV i.e., FDO INV and Xp Malls go up and down completely randomly.
Pair Corralation between FDO INV and Xp Malls
Assuming the 90 days trading horizon FDO INV IMOB is expected to generate 0.03 times more return on investment than Xp Malls. However, FDO INV IMOB is 35.12 times less risky than Xp Malls. It trades about 0.22 of its potential returns per unit of risk. Xp Malls Fundo is currently generating about -0.19 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FDO INV IMOB vs. Xp Malls Fundo
Performance |
| Timeline |
| FDO INV IMOB |
| Xp Malls Fundo |
FDO INV and Xp Malls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDO INV and Xp Malls
The main advantage of trading using opposite FDO INV and Xp Malls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDO INV position performs unexpectedly, Xp Malls 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 Xp Malls will offset losses from the drop in Xp Malls' 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 |
| Xp Malls vs. BTG Pactual Logstica | Xp Malls vs. Plano Plano Desenvolvimento | Xp Malls vs. Companhia Habitasul de | Xp Malls 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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