Correlation Between Kinea Renda and Kinea Fundo
Can any of the company-specific risk be diversified away by investing in both Kinea Renda 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 Renda 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 Renda Imobiliria and Kinea Fundo Fundos, you can compare the effects of market volatilities on Kinea Renda 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 Renda with a short position of Kinea Fundo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Renda and Kinea Fundo.
Diversification Opportunities for Kinea Renda and Kinea Fundo
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinea and Kinea is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Renda Imobiliria 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 Renda 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 Renda Imobiliria 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 Renda i.e., Kinea Renda and Kinea Fundo go up and down completely randomly.
Pair Corralation between Kinea Renda and Kinea Fundo
Assuming the 90 days trading horizon Kinea Renda Imobiliria is expected to under-perform the Kinea Fundo. But the fund apears to be less risky and, when comparing its historical volatility, Kinea Renda Imobiliria is 1.55 times less risky than Kinea Fundo. The fund trades about -0.05 of its potential returns per unit of risk. The Kinea Fundo Fundos is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 8,584 in Kinea Fundo Fundos on September 2, 2024 and sell it today you would lose (950.00) from holding Kinea Fundo Fundos or give up 11.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinea Renda Imobiliria vs. Kinea Fundo Fundos
Performance |
| Timeline |
| Kinea Renda Imobiliria |
| Kinea Fundo Fundos |
Kinea Renda and Kinea Fundo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Renda and Kinea Fundo
The main advantage of trading using opposite Kinea Renda and Kinea Fundo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Renda 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 Renda vs. Kinea Oportunidades Real | Kinea Renda vs. Kinea Indices Precos | Kinea Renda vs. Kinea Creditas Fundo | Kinea Renda 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |