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
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cshg and Kinea is 0.83. 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 generate 1.31 times more return on investment than Kinea Renda. However, Cshg Logistica is 1.31 times more volatile than Kinea Renda Imobiliria. It trades about -0.05 of its potential returns per unit of risk. Kinea Renda Imobiliria is currently generating about -0.13 per unit of risk. If you would invest 15,171 in Cshg Logistica on September 12, 2024 and sell it today you would lose (271.00) from holding Cshg Logistica or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| 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. Cshg Jhsf Prime | Cshg Logistica vs. Cshg Atrium Shopping | Cshg Logistica vs. FDO INV IMOB | Cshg Logistica vs. SUPREMO FUNDO DE |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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