Correlation Between Hedge Aaa and Af Invest
Can any of the company-specific risk be diversified away by investing in both Hedge Aaa and Af Invest 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 Hedge Aaa and Af Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedge Aaa Fundo and Af Invest Cri, you can compare the effects of market volatilities on Hedge Aaa and Af Invest 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 Hedge Aaa with a short position of Af Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedge Aaa and Af Invest.
Diversification Opportunities for Hedge Aaa and Af Invest
Very weak diversification
The 3 months correlation between Hedge and AFHI11 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hedge Aaa Fundo and Af Invest Cri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Af Invest Cri and Hedge Aaa 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 Hedge Aaa Fundo are associated (or correlated) with Af Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Af Invest Cri has no effect on the direction of Hedge Aaa i.e., Hedge Aaa and Af Invest go up and down completely randomly.
Pair Corralation between Hedge Aaa and Af Invest
Assuming the 90 days trading horizon Hedge Aaa is expected to generate 3.4 times less return on investment than Af Invest. But when comparing it to its historical volatility, Hedge Aaa Fundo is 7.39 times less risky than Af Invest. It trades about 0.17 of its potential returns per unit of risk. Af Invest Cri is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,310 in Af Invest Cri on August 31, 2024 and sell it today you would earn a total of 78.00 from holding Af Invest Cri or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hedge Aaa Fundo vs. Af Invest Cri
Performance |
| Timeline |
| Hedge Aaa Fundo |
| Af Invest Cri |
Hedge Aaa and Af Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedge Aaa and Af Invest
The main advantage of trading using opposite Hedge Aaa and Af Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedge Aaa position performs unexpectedly, Af Invest 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 Af Invest will offset losses from the drop in Af Invest's long position.| Hedge Aaa vs. Hedge Top Fofii | Hedge Aaa vs. Hedge Realty Development | Hedge Aaa vs. Hedge Logistica Fundo | Hedge Aaa vs. Hedge Recebiveis Fundo |
| Af Invest vs. Energisa SA | Af Invest vs. BTG Pactual Logstica | Af Invest vs. Plano Plano Desenvolvimento | Af Invest vs. Companhia Habitasul de |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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