Correlation Between EXES FUNDO and FDO INV
Can any of the company-specific risk be diversified away by investing in both EXES FUNDO and FDO INV 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 EXES FUNDO and FDO INV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXES FUNDO DE and FDO INV IMOB, you can compare the effects of market volatilities on EXES FUNDO and FDO INV 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 EXES FUNDO with a short position of FDO INV. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXES FUNDO and FDO INV.
Diversification Opportunities for EXES FUNDO and FDO INV
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EXES and FDO is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding EXES FUNDO DE and FDO INV IMOB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDO INV IMOB and EXES 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 EXES FUNDO DE are associated (or correlated) with FDO INV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDO INV IMOB has no effect on the direction of EXES FUNDO i.e., EXES FUNDO and FDO INV go up and down completely randomly.
Pair Corralation between EXES FUNDO and FDO INV
Assuming the 90 days trading horizon EXES FUNDO DE is expected to under-perform the FDO INV. But the fund apears to be less risky and, when comparing its historical volatility, EXES FUNDO DE is 1.0 times less risky than FDO INV. The fund trades about -0.33 of its potential returns per unit of risk. The FDO INV IMOB is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 143,405 in FDO INV IMOB on October 23, 2024 and sell it today you would earn a total of 845.00 from holding FDO INV IMOB or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
EXES FUNDO DE vs. FDO INV IMOB
Performance |
| Timeline |
| EXES FUNDO DE |
| FDO INV IMOB |
EXES FUNDO and FDO INV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXES FUNDO and FDO INV
The main advantage of trading using opposite EXES FUNDO and FDO INV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXES FUNDO position performs unexpectedly, FDO INV 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 FDO INV will offset losses from the drop in FDO INV's long position.| EXES FUNDO vs. FDO INV IMOB | EXES FUNDO vs. FDO INV IMOB | EXES FUNDO vs. Energisa SA | EXES FUNDO vs. BTG Pactual Logstica |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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