Correlation Between Capitania Infra and Capitania Securities
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By analyzing existing cross correlation between Capitania Infra Fic and Capitania Securities II, you can compare the effects of market volatilities on Capitania Infra and Capitania Securities 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 Capitania Infra with a short position of Capitania Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capitania Infra and Capitania Securities.
Diversification Opportunities for Capitania Infra and Capitania Securities
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capitania and Capitania is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Capitania Infra Fic and Capitania Securities II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capitania Securities and Capitania Infra 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 Capitania Infra Fic are associated (or correlated) with Capitania Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capitania Securities has no effect on the direction of Capitania Infra i.e., Capitania Infra and Capitania Securities go up and down completely randomly.
Pair Corralation between Capitania Infra and Capitania Securities
Assuming the 90 days trading horizon Capitania Infra Fic is expected to generate 0.27 times more return on investment than Capitania Securities. However, Capitania Infra Fic is 3.73 times less risky than Capitania Securities. It trades about -0.22 of its potential returns per unit of risk. Capitania Securities II is currently generating about -0.22 per unit of risk. If you would invest 9,588 in Capitania Infra Fic on August 28, 2024 and sell it today you would lose (923.00) from holding Capitania Infra Fic or give up 9.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capitania Infra Fic vs. Capitania Securities II
Performance |
| Timeline |
| Capitania Infra Fic |
| Capitania Securities |
Capitania Infra and Capitania Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capitania Infra and Capitania Securities
The main advantage of trading using opposite Capitania Infra and Capitania Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capitania Infra position performs unexpectedly, Capitania Securities 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 Capitania Securities will offset losses from the drop in Capitania Securities' long position.| Capitania Infra vs. BTG Pactual Logstica | Capitania Infra vs. Plano Plano Desenvolvimento | Capitania Infra vs. Companhia Habitasul de | Capitania Infra vs. The Procter Gamble |
| Capitania Securities vs. Capitania Infra Fic | Capitania Securities vs. RB Capital Office | Capitania Securities vs. Ishares Msci Brazil | Capitania Securities vs. Investo Etf Global |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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