Correlation Between Fundo De and Mangels Industrial
Can any of the company-specific risk be diversified away by investing in both Fundo De and Mangels Industrial 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 Fundo De and Mangels Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundo de Investimento and Mangels Industrial SA, you can compare the effects of market volatilities on Fundo De and Mangels Industrial 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 Fundo De with a short position of Mangels Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo De and Mangels Industrial.
Diversification Opportunities for Fundo De and Mangels Industrial
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fundo and Mangels is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fundo de Investimento and Mangels Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangels Industrial and Fundo De 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 Fundo de Investimento are associated (or correlated) with Mangels Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangels Industrial has no effect on the direction of Fundo De i.e., Fundo De and Mangels Industrial go up and down completely randomly.
Pair Corralation between Fundo De and Mangels Industrial
Assuming the 90 days trading horizon Fundo de Investimento is expected to generate 0.61 times more return on investment than Mangels Industrial. However, Fundo de Investimento is 1.63 times less risky than Mangels Industrial. It trades about -0.17 of its potential returns per unit of risk. Mangels Industrial SA is currently generating about -0.48 per unit of risk. If you would invest 5,037 in Fundo de Investimento on August 30, 2024 and sell it today you would lose (135.00) from holding Fundo de Investimento or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundo de Investimento vs. Mangels Industrial SA
Performance |
| Timeline |
| Fundo de Investimento |
| Mangels Industrial |
Fundo De and Mangels Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundo De and Mangels Industrial
The main advantage of trading using opposite Fundo De and Mangels Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundo De position performs unexpectedly, Mangels Industrial 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 Mangels Industrial will offset losses from the drop in Mangels Industrial's long position.| Fundo De vs. Fundo Investimento Imobiliario | Fundo De vs. Fundo De Investimentos | Fundo De vs. Fundo Invest Imobiliario | Fundo De vs. Fundo de Investimento |
| Mangels Industrial vs. Schulz SA | Mangels Industrial vs. Springs Global Participaes | Mangels Industrial vs. Marcopolo SA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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