Correlation Between Kinea Hedge and Energisa
Can any of the company-specific risk be diversified away by investing in both Kinea Hedge 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 Hedge and Energisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinea Hedge Fund and Energisa SA, you can compare the effects of market volatilities on Kinea Hedge 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 Hedge with a short position of Energisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Hedge and Energisa.
Diversification Opportunities for Kinea Hedge and Energisa
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinea and Energisa is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Hedge Fund and Energisa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energisa SA and Kinea Hedge 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 Hedge Fund 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 Hedge i.e., Kinea Hedge and Energisa go up and down completely randomly.
Pair Corralation between Kinea Hedge and Energisa
Assuming the 90 days trading horizon Kinea Hedge Fund is expected to generate 0.55 times more return on investment than Energisa. However, Kinea Hedge Fund is 1.83 times less risky than Energisa. It trades about -0.01 of its potential returns per unit of risk. Energisa SA is currently generating about -0.01 per unit of risk. If you would invest 8,943 in Kinea Hedge Fund on September 2, 2024 and sell it today you would lose (423.00) from holding Kinea Hedge Fund or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.83% |
| Values | Daily Returns |
Kinea Hedge Fund vs. Energisa SA
Performance |
| Timeline |
| Kinea Hedge Fund |
| Energisa SA |
Kinea Hedge and Energisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Hedge and Energisa
The main advantage of trading using opposite Kinea Hedge and Energisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Hedge 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 Hedge vs. Domo Fundo de | Kinea Hedge vs. Aesapar Fundo de | Kinea Hedge vs. Ourinvest Jpp Fundo | Kinea Hedge vs. Loft II 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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