Correlation Between JHSF Participaes and Fundo De
Can any of the company-specific risk be diversified away by investing in both JHSF Participaes 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 JHSF Participaes and Fundo De into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JHSF Participaes SA and Fundo de Investimento, you can compare the effects of market volatilities on JHSF Participaes 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 JHSF Participaes with a short position of Fundo De. Check out your portfolio center. Please also check ongoing floating volatility patterns of JHSF Participaes and Fundo De.
Diversification Opportunities for JHSF Participaes and Fundo De
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between JHSF and Fundo is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding JHSF Participaes SA 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 JHSF Participaes 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 JHSF Participaes SA 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 JHSF Participaes i.e., JHSF Participaes and Fundo De go up and down completely randomly.
Pair Corralation between JHSF Participaes and Fundo De
Assuming the 90 days trading horizon JHSF Participaes SA is expected to generate 1.21 times more return on investment than Fundo De. However, JHSF Participaes is 1.21 times more volatile than Fundo de Investimento. It trades about 0.07 of its potential returns per unit of risk. Fundo de Investimento is currently generating about 0.03 per unit of risk. If you would invest 437.00 in JHSF Participaes SA on August 26, 2024 and sell it today you would earn a total of 12.00 from holding JHSF Participaes SA or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JHSF Participaes SA vs. Fundo de Investimento
Performance |
| Timeline |
| JHSF Participaes |
| Fundo de Investimento |
JHSF Participaes and Fundo De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JHSF Participaes and Fundo De
The main advantage of trading using opposite JHSF Participaes and Fundo De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JHSF Participaes 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.| JHSF Participaes vs. Fundo de Investimento | JHSF Participaes vs. Fator IFIX Fundo | JHSF Participaes vs. Domo Fundo de | JHSF Participaes vs. Credit Acceptance |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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