Correlation Between Kinea Rendimentos and Kinea Oportunidades
Can any of the company-specific risk be diversified away by investing in both Kinea Rendimentos 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 Rendimentos 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 Rendimentos Imobilirios and Kinea Oportunidades Real, you can compare the effects of market volatilities on Kinea Rendimentos 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 Rendimentos with a short position of Kinea Oportunidades. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Rendimentos and Kinea Oportunidades.
Diversification Opportunities for Kinea Rendimentos and Kinea Oportunidades
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinea and Kinea is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Rendimentos Imobilirios 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 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 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 Rendimentos i.e., Kinea Rendimentos and Kinea Oportunidades go up and down completely randomly.
Pair Corralation between Kinea Rendimentos and Kinea Oportunidades
Assuming the 90 days trading horizon Kinea Rendimentos Imobilirios is expected to generate 0.48 times more return on investment than Kinea Oportunidades. However, Kinea Rendimentos Imobilirios is 2.09 times less risky than Kinea Oportunidades. It trades about 0.08 of its potential returns per unit of risk. Kinea Oportunidades Real is currently generating about -0.03 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 | 66.04% |
| Values | Daily Returns |
Kinea Rendimentos Imobilirios vs. Kinea Oportunidades Real
Performance |
| Timeline |
| Kinea Rendimentos |
| Kinea Oportunidades Real |
Kinea Rendimentos and Kinea Oportunidades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Rendimentos and Kinea Oportunidades
The main advantage of trading using opposite Kinea Rendimentos and Kinea Oportunidades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Rendimentos 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 Rendimentos vs. Fundos de Investimento | Kinea Rendimentos vs. Brio Multiestrategi Fundo | Kinea Rendimentos vs. TRX Renda Fundo | Kinea Rendimentos vs. HEDGE SEED FUNDO |
| Kinea Oportunidades vs. Mogno Logistica Fundo | Kinea Oportunidades vs. Luggo Fundo De | Kinea Oportunidades vs. Ourinvest Jpp Fundo | Kinea Oportunidades vs. Brio Multiestrategi Fundo |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |