Correlation Between Kinea II and Kinea Fundo
Can any of the company-specific risk be diversified away by investing in both Kinea II and Kinea Fundo 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 II and Kinea Fundo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinea II Real and Kinea Fundo Fundos, you can compare the effects of market volatilities on Kinea II and Kinea Fundo 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 II with a short position of Kinea Fundo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea II and Kinea Fundo.
Diversification Opportunities for Kinea II and Kinea Fundo
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinea and Kinea is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kinea II Real and Kinea Fundo Fundos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Fundo Fundos and Kinea II 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 II Real are associated (or correlated) with Kinea Fundo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Fundo Fundos has no effect on the direction of Kinea II i.e., Kinea II and Kinea Fundo go up and down completely randomly.
Pair Corralation between Kinea II and Kinea Fundo
Assuming the 90 days trading horizon Kinea II Real is expected to generate 5.41 times more return on investment than Kinea Fundo. However, Kinea II is 5.41 times more volatile than Kinea Fundo Fundos. It trades about 0.03 of its potential returns per unit of risk. Kinea Fundo Fundos is currently generating about 0.05 per unit of risk. If you would invest 24.00 in Kinea II Real on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Kinea II Real or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinea II Real vs. Kinea Fundo Fundos
Performance |
| Timeline |
| Kinea II Real |
| Kinea Fundo Fundos |
Kinea II and Kinea Fundo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea II and Kinea Fundo
The main advantage of trading using opposite Kinea II and Kinea Fundo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea II position performs unexpectedly, Kinea Fundo 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 Fundo will offset losses from the drop in Kinea Fundo's long position.| Kinea II vs. Kinea Oportunidades Real | Kinea II vs. Kinea Indices Precos | Kinea II vs. Kinea Creditas Fundo | Kinea II vs. Kinea Securities Fundo |
| Kinea Fundo vs. ASA METROPOLIS FUNDO | Kinea Fundo vs. V2 Recebveis Imobilirios | Kinea Fundo vs. DEVANT PROPERTIES FUNDO | Kinea Fundo vs. Hedge Aaa 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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