Correlation Between Kinea Indices and Kinea Rendimentos
Can any of the company-specific risk be diversified away by investing in both Kinea Indices and Kinea Rendimentos 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 Indices and Kinea Rendimentos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinea Indices Precos and Kinea Rendimentos Imobilirios, you can compare the effects of market volatilities on Kinea Indices and Kinea Rendimentos 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 Indices with a short position of Kinea Rendimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Indices and Kinea Rendimentos.
Diversification Opportunities for Kinea Indices and Kinea Rendimentos
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinea and Kinea is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Indices Precos and Kinea Rendimentos Imobilirios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Rendimentos and Kinea Indices 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 Indices Precos are associated (or correlated) with Kinea Rendimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Rendimentos has no effect on the direction of Kinea Indices i.e., Kinea Indices and Kinea Rendimentos go up and down completely randomly.
Pair Corralation between Kinea Indices and Kinea Rendimentos
Assuming the 90 days trading horizon Kinea Indices Precos is expected to under-perform the Kinea Rendimentos. In addition to that, Kinea Indices is 1.0 times more volatile than Kinea Rendimentos Imobilirios. It trades about 0.0 of its total potential returns per unit of risk. Kinea Rendimentos Imobilirios is currently generating about 0.08 per unit of volatility. 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 Indices Precos vs. Kinea Rendimentos Imobilirios
Performance |
| Timeline |
| Kinea Indices Precos |
| Kinea Rendimentos |
Kinea Indices and Kinea Rendimentos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Indices and Kinea Rendimentos
The main advantage of trading using opposite Kinea Indices and Kinea Rendimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Indices position performs unexpectedly, Kinea Rendimentos 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 Rendimentos will offset losses from the drop in Kinea Rendimentos' long position.| Kinea Indices vs. Brio Multiestrategi Fundo | Kinea Indices vs. JPP Allocation Mogno | Kinea Indices vs. Itau Fundo De | Kinea Indices vs. Guardian Logistica Fundo |
| Kinea Rendimentos vs. Fundos de Investimento | Kinea Rendimentos vs. Brio Multiestrategi Fundo | Kinea Rendimentos vs. TRX Renda Fundo | Kinea Rendimentos vs. Hsi Logistica 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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