Correlation Between Cshg Jhsf and Loft II
Can any of the company-specific risk be diversified away by investing in both Cshg Jhsf and Loft II 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 Jhsf and Loft II into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cshg Jhsf Prime and Loft II Fundo, you can compare the effects of market volatilities on Cshg Jhsf and Loft II 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 Jhsf with a short position of Loft II. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Jhsf and Loft II.
Diversification Opportunities for Cshg Jhsf and Loft II
Weak diversification
The 3 months correlation between Cshg and Loft is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Jhsf Prime and Loft II Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loft II Fundo and Cshg Jhsf 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 Jhsf Prime are associated (or correlated) with Loft II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loft II Fundo has no effect on the direction of Cshg Jhsf i.e., Cshg Jhsf and Loft II go up and down completely randomly.
Pair Corralation between Cshg Jhsf and Loft II
Assuming the 90 days trading horizon Cshg Jhsf Prime is expected to generate 0.62 times more return on investment than Loft II. However, Cshg Jhsf Prime is 1.61 times less risky than Loft II. It trades about -0.02 of its potential returns per unit of risk. Loft II Fundo is currently generating about -0.04 per unit of risk. If you would invest 23,840 in Cshg Jhsf Prime on August 27, 2024 and sell it today you would lose (11,488) from holding Cshg Jhsf Prime or give up 48.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cshg Jhsf Prime vs. Loft II Fundo
Performance |
| Timeline |
| Cshg Jhsf Prime |
| Loft II Fundo |
Cshg Jhsf and Loft II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cshg Jhsf and Loft II
The main advantage of trading using opposite Cshg Jhsf and Loft II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cshg Jhsf position performs unexpectedly, Loft II 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 Loft II will offset losses from the drop in Loft II's long position.| Cshg Jhsf vs. BTG Pactual Logstica | Cshg Jhsf vs. Plano Plano Desenvolvimento | Cshg Jhsf vs. Companhia Habitasul de | Cshg Jhsf vs. The Procter Gamble |
| Loft II vs. BTG Pactual Logstica | Loft II vs. Plano Plano Desenvolvimento | Loft II vs. Companhia Habitasul de | Loft II vs. The Procter Gamble |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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