Correlation Between Kinea Fundo and Kinea Oportunidades
Can any of the company-specific risk be diversified away by investing in both Kinea Fundo and Kinea Oportunidades 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 Fundo and Kinea Oportunidades into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinea Fundo Fundos and Kinea Oportunidades Real, you can compare the effects of market volatilities on Kinea Fundo and Kinea Oportunidades 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 Fundo with a short position of Kinea Oportunidades. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Fundo and Kinea Oportunidades.
Diversification Opportunities for Kinea Fundo and Kinea Oportunidades
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinea and Kinea is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Fundo Fundos and Kinea Oportunidades Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Oportunidades Real and Kinea Fundo 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 Fundo Fundos are associated (or correlated) with Kinea Oportunidades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Oportunidades Real has no effect on the direction of Kinea Fundo i.e., Kinea Fundo and Kinea Oportunidades go up and down completely randomly.
Pair Corralation between Kinea Fundo and Kinea Oportunidades
Assuming the 90 days trading horizon Kinea Fundo Fundos is expected to under-perform the Kinea Oportunidades. But the fund apears to be less risky and, when comparing its historical volatility, Kinea Fundo Fundos is 1.31 times less risky than Kinea Oportunidades. The fund trades about -0.09 of its potential returns per unit of risk. The Kinea Oportunidades Real is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 7,561 in Kinea Oportunidades Real on November 18, 2024 and sell it today you would lose (321.00) from holding Kinea Oportunidades Real or give up 4.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinea Fundo Fundos vs. Kinea Oportunidades Real
Performance |
| Timeline |
| Kinea Fundo Fundos |
| Kinea Oportunidades Real |
Kinea Fundo and Kinea Oportunidades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Fundo and Kinea Oportunidades
The main advantage of trading using opposite Kinea Fundo and Kinea Oportunidades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Fundo position performs unexpectedly, Kinea Oportunidades 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 Oportunidades will offset losses from the drop in Kinea Oportunidades' long position.| Kinea Fundo vs. Energisa SA | Kinea Fundo vs. BTG Pactual Logstica | Kinea Fundo vs. Plano Plano Desenvolvimento | Kinea Fundo vs. Ares Management |
| Kinea Oportunidades vs. Kinea Indices Precos | Kinea Oportunidades vs. Kinea Creditas Fundo | Kinea Oportunidades vs. Kinea Securities Fundo | Kinea Oportunidades 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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