Correlation Between Kinea Rendimentos and Energisa
Can any of the company-specific risk be diversified away by investing in both Kinea Rendimentos and Energisa 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 Rendimentos and Energisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinea Rendimentos Imobilirios and Energisa SA, you can compare the effects of market volatilities on Kinea Rendimentos and Energisa 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 Rendimentos with a short position of Energisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Rendimentos and Energisa.
Diversification Opportunities for Kinea Rendimentos and Energisa
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinea and Energisa is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Rendimentos Imobilirios and Energisa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energisa SA and Kinea Rendimentos 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 Rendimentos Imobilirios are associated (or correlated) with Energisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energisa SA has no effect on the direction of Kinea Rendimentos i.e., Kinea Rendimentos and Energisa go up and down completely randomly.
Pair Corralation between Kinea Rendimentos and Energisa
Assuming the 90 days trading horizon Kinea Rendimentos Imobilirios is expected to generate 0.33 times more return on investment than Energisa. However, Kinea Rendimentos Imobilirios is 3.02 times less risky than Energisa. It trades about 0.08 of its potential returns per unit of risk. Energisa SA is currently generating about -0.01 per unit of risk. If you would invest 9,011 in Kinea Rendimentos Imobilirios on September 2, 2024 and sell it today you would earn a total of 1,401 from holding Kinea Rendimentos Imobilirios or generate 15.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinea Rendimentos Imobilirios vs. Energisa SA
Performance |
| Timeline |
| Kinea Rendimentos |
| Energisa SA |
Kinea Rendimentos and Energisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Rendimentos and Energisa
The main advantage of trading using opposite Kinea Rendimentos and Energisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Rendimentos position performs unexpectedly, Energisa 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 Energisa will offset losses from the drop in Energisa's long position.| Kinea Rendimentos vs. Fundos de Investimento | Kinea Rendimentos vs. Brio Multiestrategi Fundo | Kinea Rendimentos vs. TRX Renda Fundo | Kinea Rendimentos vs. HEDGE SEED FUNDO |
| Energisa vs. Equatorial Energia SA | Energisa vs. CPFL Energia SA | Energisa vs. Eneva SA | Energisa vs. Companhia de Saneamento |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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