Correlation Between Cshg Logistica and Kinea Renda
Can any of the company-specific risk be diversified away by investing in both Cshg Logistica and Kinea Renda 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 Cshg Logistica and Kinea Renda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cshg Logistica and Kinea Renda Imobiliria, you can compare the effects of market volatilities on Cshg Logistica and Kinea Renda 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 Cshg Logistica with a short position of Kinea Renda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Logistica and Kinea Renda.
Diversification Opportunities for Cshg Logistica and Kinea Renda
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cshg and Kinea is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Logistica and Kinea Renda Imobiliria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Renda Imobiliria and Cshg Logistica 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 Cshg Logistica are associated (or correlated) with Kinea Renda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Renda Imobiliria has no effect on the direction of Cshg Logistica i.e., Cshg Logistica and Kinea Renda go up and down completely randomly.
Pair Corralation between Cshg Logistica and Kinea Renda
Assuming the 90 days trading horizon Cshg Logistica is expected to under-perform the Kinea Renda. But the fund apears to be less risky and, when comparing its historical volatility, Cshg Logistica is 1.26 times less risky than Kinea Renda. The fund trades about -0.07 of its potential returns per unit of risk. The Kinea Renda Imobiliria is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 13,153 in Kinea Renda Imobiliria on October 21, 2024 and sell it today you would earn a total of 112.00 from holding Kinea Renda Imobiliria or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cshg Logistica vs. Kinea Renda Imobiliria
Performance |
| Timeline |
| Cshg Logistica |
| Kinea Renda Imobiliria |
Cshg Logistica and Kinea Renda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cshg Logistica and Kinea Renda
The main advantage of trading using opposite Cshg Logistica and Kinea Renda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cshg Logistica position performs unexpectedly, Kinea Renda 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 Kinea Renda will offset losses from the drop in Kinea Renda's long position.| Cshg Logistica vs. Polo Fundo de | Cshg Logistica vs. BTG Pactual Logstica | Cshg Logistica vs. Plano Plano Desenvolvimento | Cshg Logistica vs. Gen Digital |
| Kinea Renda vs. Polo Fundo de | Kinea Renda vs. BTG Pactual Logstica | Kinea Renda vs. Plano Plano Desenvolvimento | Kinea Renda vs. Gen Digital |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |