Correlation Between Hsi Malls and JFL Living
Can any of the company-specific risk be diversified away by investing in both Hsi Malls and JFL Living 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 Hsi Malls and JFL Living into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hsi Malls Fundo and JFL Living Fundo, you can compare the effects of market volatilities on Hsi Malls and JFL Living 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 Hsi Malls with a short position of JFL Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hsi Malls and JFL Living.
Diversification Opportunities for Hsi Malls and JFL Living
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hsi and JFL is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hsi Malls Fundo and JFL Living Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JFL Living Fundo and Hsi Malls 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 Hsi Malls Fundo are associated (or correlated) with JFL Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JFL Living Fundo has no effect on the direction of Hsi Malls i.e., Hsi Malls and JFL Living go up and down completely randomly.
Pair Corralation between Hsi Malls and JFL Living
Assuming the 90 days trading horizon Hsi Malls Fundo is expected to under-perform the JFL Living. But the fund apears to be less risky and, when comparing its historical volatility, Hsi Malls Fundo is 1.34 times less risky than JFL Living. The fund trades about -0.1 of its potential returns per unit of risk. The JFL Living Fundo is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,940 in JFL Living Fundo on August 30, 2024 and sell it today you would earn a total of 326.00 from holding JFL Living Fundo or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hsi Malls Fundo vs. JFL Living Fundo
Performance |
| Timeline |
| Hsi Malls Fundo |
| JFL Living Fundo |
Hsi Malls and JFL Living Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hsi Malls and JFL Living
The main advantage of trading using opposite Hsi Malls and JFL Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hsi Malls position performs unexpectedly, JFL Living 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 JFL Living will offset losses from the drop in JFL Living's long position.| Hsi Malls vs. Energisa SA | Hsi Malls vs. BTG Pactual Logstica | Hsi Malls vs. Plano Plano Desenvolvimento | Hsi Malls vs. Companhia Habitasul de |
| JFL Living vs. Domo Fundo de | JFL Living vs. Aesapar Fundo de | JFL Living vs. Ourinvest Jpp Fundo | JFL Living vs. Loft II Fundo |
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 CEOs Directory module to screen CEOs from public companies around the world.
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