Correlation Between JFL Living and FUNDO DE
Can any of the company-specific risk be diversified away by investing in both JFL Living and FUNDO DE 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 JFL Living and FUNDO DE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JFL Living Fundo and FUNDO DE INVESTIMENTO, you can compare the effects of market volatilities on JFL Living and FUNDO DE 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 JFL Living with a short position of FUNDO DE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JFL Living and FUNDO DE.
Diversification Opportunities for JFL Living and FUNDO DE
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JFL and FUNDO is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding JFL Living Fundo and FUNDO DE INVESTIMENTO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUNDO DE INVESTIMENTO and JFL Living 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 JFL Living Fundo are associated (or correlated) with FUNDO DE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUNDO DE INVESTIMENTO has no effect on the direction of JFL Living i.e., JFL Living and FUNDO DE go up and down completely randomly.
Pair Corralation between JFL Living and FUNDO DE
Assuming the 90 days trading horizon JFL Living Fundo is expected to generate 0.9 times more return on investment than FUNDO DE. However, JFL Living Fundo is 1.11 times less risky than FUNDO DE. It trades about 0.27 of its potential returns per unit of risk. FUNDO DE INVESTIMENTO is currently generating about -0.19 per unit of risk. If you would invest 7,008 in JFL Living Fundo on August 26, 2024 and sell it today you would earn a total of 397.00 from holding JFL Living Fundo or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JFL Living Fundo vs. FUNDO DE INVESTIMENTO
Performance |
| Timeline |
| JFL Living Fundo |
| FUNDO DE INVESTIMENTO |
JFL Living and FUNDO DE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JFL Living and FUNDO DE
The main advantage of trading using opposite JFL Living and FUNDO DE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JFL Living position performs unexpectedly, FUNDO DE 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 FUNDO DE will offset losses from the drop in FUNDO DE's long position.| JFL Living vs. BTG Pactual Logstica | JFL Living vs. Plano Plano Desenvolvimento | JFL Living vs. Companhia Habitasul de | JFL Living vs. The Procter Gamble |
| FUNDO DE vs. BTG Pactual Logstica | FUNDO DE vs. Plano Plano Desenvolvimento | FUNDO DE vs. Companhia Habitasul de | FUNDO DE 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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