Correlation Between Fundos De and CA Modas
Can any of the company-specific risk be diversified away by investing in both Fundos De and CA Modas 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 Fundos De and CA Modas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundos de Investimento and CA Modas SA, you can compare the effects of market volatilities on Fundos De and CA Modas 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 Fundos De with a short position of CA Modas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundos De and CA Modas.
Diversification Opportunities for Fundos De and CA Modas
Significant diversification
The 3 months correlation between Fundos and CEAB3 is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fundos de Investimento and CA Modas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CA Modas SA and Fundos 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 Fundos de Investimento are associated (or correlated) with CA Modas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CA Modas SA has no effect on the direction of Fundos De i.e., Fundos De and CA Modas go up and down completely randomly.
Pair Corralation between Fundos De and CA Modas
Assuming the 90 days trading horizon Fundos de Investimento is expected to generate 0.68 times more return on investment than CA Modas. However, Fundos de Investimento is 1.47 times less risky than CA Modas. It trades about 0.21 of its potential returns per unit of risk. CA Modas SA is currently generating about -0.15 per unit of risk. If you would invest 4,399 in Fundos de Investimento on September 2, 2024 and sell it today you would earn a total of 638.00 from holding Fundos de Investimento or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundos de Investimento vs. CA Modas SA
Performance |
| Timeline |
| Fundos de Investimento |
| CA Modas SA |
Fundos De and CA Modas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundos De and CA Modas
The main advantage of trading using opposite Fundos De and CA Modas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundos De position performs unexpectedly, CA Modas 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 CA Modas will offset losses from the drop in CA Modas' long position.| Fundos De vs. Energisa SA | Fundos De vs. BTG Pactual Logstica | Fundos De vs. Plano Plano Desenvolvimento | Fundos De vs. Companhia Habitasul de |
| CA Modas vs. Marisa Lojas SA | CA Modas vs. Vivara Participaes SA | CA Modas vs. Guararapes Confeces SA | CA Modas vs. Atacado 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |