Correlation Between HAGA SA and T4F Entretenimento
Can any of the company-specific risk be diversified away by investing in both HAGA SA and T4F Entretenimento 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 HAGA SA and T4F Entretenimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAGA SA Indstria and T4F Entretenimento SA, you can compare the effects of market volatilities on HAGA SA and T4F Entretenimento 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 HAGA SA with a short position of T4F Entretenimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAGA SA and T4F Entretenimento.
Diversification Opportunities for HAGA SA and T4F Entretenimento
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HAGA and T4F is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding HAGA SA Indstria and T4F Entretenimento SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T4F Entretenimento and HAGA SA 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 HAGA SA Indstria are associated (or correlated) with T4F Entretenimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T4F Entretenimento has no effect on the direction of HAGA SA i.e., HAGA SA and T4F Entretenimento go up and down completely randomly.
Pair Corralation between HAGA SA and T4F Entretenimento
Assuming the 90 days trading horizon HAGA SA Indstria is expected to generate 0.28 times more return on investment than T4F Entretenimento. However, HAGA SA Indstria is 3.61 times less risky than T4F Entretenimento. It trades about -0.19 of its potential returns per unit of risk. T4F Entretenimento SA is currently generating about -0.19 per unit of risk. If you would invest 131.00 in HAGA SA Indstria on September 1, 2024 and sell it today you would lose (6.00) from holding HAGA SA Indstria or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HAGA SA Indstria vs. T4F Entretenimento SA
Performance |
| Timeline |
| HAGA SA Indstria |
| T4F Entretenimento |
HAGA SA and T4F Entretenimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAGA SA and T4F Entretenimento
The main advantage of trading using opposite HAGA SA and T4F Entretenimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAGA SA position performs unexpectedly, T4F Entretenimento 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 T4F Entretenimento will offset losses from the drop in T4F Entretenimento's long position.| HAGA SA vs. Fras le SA | HAGA SA vs. PBG SA | HAGA SA vs. Springs Global Participaes | HAGA SA vs. Indstrias Romi SA |
| T4F Entretenimento vs. LPS Brasil | T4F Entretenimento vs. PBG SA | T4F Entretenimento vs. Springs Global Participaes | T4F Entretenimento vs. Indstrias Romi 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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