Correlation Between Kinea Hedge and Kinea Renda
Can any of the company-specific risk be diversified away by investing in both Kinea Hedge and Kinea Renda 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 Kinea Renda 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 Kinea Renda Imobiliria, you can compare the effects of market volatilities on Kinea Hedge and Kinea Renda 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 Kinea Renda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Hedge and Kinea Renda.
Diversification Opportunities for Kinea Hedge and Kinea Renda
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 Hedge Fund and Kinea Renda Imobiliria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Renda Imobiliria 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 Kinea Renda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Renda Imobiliria has no effect on the direction of Kinea Hedge i.e., Kinea Hedge and Kinea Renda go up and down completely randomly.
Pair Corralation between Kinea Hedge and Kinea Renda
Assuming the 90 days trading horizon Kinea Hedge Fund is expected to generate 1.13 times more return on investment than Kinea Renda. However, Kinea Hedge is 1.13 times more volatile than Kinea Renda Imobiliria. It trades about -0.01 of its potential returns per unit of risk. Kinea Renda Imobiliria is currently generating about -0.05 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. Kinea Renda Imobiliria
Performance |
| Timeline |
| Kinea Hedge Fund |
| Kinea Renda Imobiliria |
Kinea Hedge and Kinea Renda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Hedge and Kinea Renda
The main advantage of trading using opposite Kinea Hedge and Kinea Renda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Hedge position performs unexpectedly, Kinea Renda 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 Renda will offset losses from the drop in Kinea Renda'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 |
| Kinea Renda vs. Kinea Oportunidades Real | Kinea Renda vs. Kinea Indices Precos | Kinea Renda vs. Kinea Creditas Fundo | Kinea Renda vs. Kinea Securities 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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