Correlation Between JFL Living and SDI Properties
Can any of the company-specific risk be diversified away by investing in both JFL Living and SDI Properties 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 SDI Properties 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 SDI Properties Fundo, you can compare the effects of market volatilities on JFL Living and SDI Properties 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 SDI Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of JFL Living and SDI Properties.
Diversification Opportunities for JFL Living and SDI Properties
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JFL and SDI is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding JFL Living Fundo and SDI Properties Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDI Properties Fundo 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 SDI Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDI Properties Fundo has no effect on the direction of JFL Living i.e., JFL Living and SDI Properties go up and down completely randomly.
Pair Corralation between JFL Living and SDI Properties
Assuming the 90 days trading horizon JFL Living Fundo is expected to generate 1.15 times more return on investment than SDI Properties. However, JFL Living is 1.15 times more volatile than SDI Properties Fundo. It trades about 0.2 of its potential returns per unit of risk. SDI Properties Fundo is currently generating about -0.01 per unit of risk. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JFL Living Fundo vs. SDI Properties Fundo
Performance |
| Timeline |
| JFL Living Fundo |
| SDI Properties Fundo |
JFL Living and SDI Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JFL Living and SDI Properties
The main advantage of trading using opposite JFL Living and SDI Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JFL Living position performs unexpectedly, SDI Properties 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 SDI Properties will offset losses from the drop in SDI Properties' long position.| JFL Living vs. Domo Fundo de | JFL Living vs. Aesapar Fundo de | JFL Living vs. Ourinvest Jpp Fundo | JFL Living vs. Loft II Fundo |
| SDI Properties vs. Energisa SA | SDI Properties vs. BTG Pactual Logstica | SDI Properties vs. Plano Plano Desenvolvimento | SDI Properties 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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