Correlation Between Kinea Creditas and Kinea Securities
Can any of the company-specific risk be diversified away by investing in both Kinea Creditas and Kinea Securities 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 Kinea Creditas and Kinea Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinea Creditas Fundo and Kinea Securities Fundo, you can compare the effects of market volatilities on Kinea Creditas and Kinea Securities 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 Kinea Creditas with a short position of Kinea Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Creditas and Kinea Securities.
Diversification Opportunities for Kinea Creditas and Kinea Securities
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinea and Kinea is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Creditas Fundo and Kinea Securities Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Securities Fundo and Kinea Creditas 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 Kinea Creditas Fundo are associated (or correlated) with Kinea Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Securities Fundo has no effect on the direction of Kinea Creditas i.e., Kinea Creditas and Kinea Securities go up and down completely randomly.
Pair Corralation between Kinea Creditas and Kinea Securities
Assuming the 90 days trading horizon Kinea Creditas Fundo is expected to generate 0.94 times more return on investment than Kinea Securities. However, Kinea Creditas Fundo is 1.07 times less risky than Kinea Securities. It trades about 0.16 of its potential returns per unit of risk. Kinea Securities Fundo is currently generating about -0.02 per unit of risk. If you would invest 864.00 in Kinea Creditas Fundo on September 2, 2024 and sell it today you would earn a total of 26.00 from holding Kinea Creditas Fundo or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinea Creditas Fundo vs. Kinea Securities Fundo
Performance |
| Timeline |
| Kinea Creditas Fundo |
| Kinea Securities Fundo |
Kinea Creditas and Kinea Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Creditas and Kinea Securities
The main advantage of trading using opposite Kinea Creditas and Kinea Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Creditas position performs unexpectedly, Kinea Securities 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 Kinea Securities will offset losses from the drop in Kinea Securities' long position.| Kinea Creditas vs. Kinea Oportunidades Real | Kinea Creditas vs. Kinea Indices Precos | Kinea Creditas vs. Kinea Securities Fundo | Kinea Creditas vs. Kinea Renda Imobiliria |
| Kinea Securities vs. Kinea Oportunidades Real | Kinea Securities vs. Kinea Indices Precos | Kinea Securities vs. Kinea Creditas Fundo | Kinea Securities vs. Kinea Renda Imobiliria |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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