Correlation Between CSHG Real and Xp Malls
Can any of the company-specific risk be diversified away by investing in both CSHG Real and Xp Malls 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 Real and Xp Malls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSHG Real Estate and Xp Malls Fundo, you can compare the effects of market volatilities on CSHG Real and Xp Malls 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 Real with a short position of Xp Malls. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSHG Real and Xp Malls.
Diversification Opportunities for CSHG Real and Xp Malls
Very poor diversification
The 3 months correlation between CSHG and XPML11 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding CSHG Real Estate and Xp Malls Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Malls Fundo and CSHG Real 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 Real Estate are associated (or correlated) with Xp Malls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Malls Fundo has no effect on the direction of CSHG Real i.e., CSHG Real and Xp Malls go up and down completely randomly.
Pair Corralation between CSHG Real and Xp Malls
Assuming the 90 days trading horizon CSHG Real Estate is expected to generate 2.3 times more return on investment than Xp Malls. However, CSHG Real is 2.3 times more volatile than Xp Malls Fundo. It trades about 0.01 of its potential returns per unit of risk. Xp Malls Fundo is currently generating about 0.02 per unit of risk. If you would invest 9,264 in CSHG Real Estate on November 2, 2024 and sell it today you would earn a total of 436.00 from holding CSHG Real Estate or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSHG Real Estate vs. Xp Malls Fundo
Performance |
| Timeline |
| CSHG Real Estate |
| Xp Malls Fundo |
CSHG Real and Xp Malls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSHG Real and Xp Malls
The main advantage of trading using opposite CSHG Real and Xp Malls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSHG Real position performs unexpectedly, Xp Malls 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 Xp Malls will offset losses from the drop in Xp Malls' long position.| CSHG Real vs. CSHG Recebiveis Imobiliarios | CSHG Real vs. CSHG Imobiliario Fof | CSHG Real vs. CSHG Renda Urbana | CSHG Real vs. FDO INV IMOB |
| Xp Malls vs. FDO INV IMOB | Xp Malls vs. SUPREMO FUNDO DE | Xp Malls vs. Real Estate Investment | Xp Malls vs. NAVI CRDITO IMOBILIRIO |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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