Correlation Between Kinea Renda and Kinea Indices
Can any of the company-specific risk be diversified away by investing in both Kinea Renda and Kinea Indices 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 Indices 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 Indices Precos, you can compare the effects of market volatilities on Kinea Renda and Kinea Indices 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 Indices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Renda and Kinea Indices.
Diversification Opportunities for Kinea Renda and Kinea Indices
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 Renda Imobiliria and Kinea Indices Precos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Indices Precos 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 Indices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Indices Precos has no effect on the direction of Kinea Renda i.e., Kinea Renda and Kinea Indices go up and down completely randomly.
Pair Corralation between Kinea Renda and Kinea Indices
Assuming the 90 days trading horizon Kinea Renda Imobiliria is expected to under-perform the Kinea Indices. In addition to that, Kinea Renda is 1.46 times more volatile than Kinea Indices Precos. It trades about -0.05 of its total potential returns per unit of risk. Kinea Indices Precos is currently generating about 0.0 per unit of volatility. If you would invest 9,144 in Kinea Indices Precos on September 2, 2024 and sell it today you would lose (71.00) from holding Kinea Indices Precos or give up 0.78% 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 Indices Precos
Performance |
| Timeline |
| Kinea Renda Imobiliria |
| Kinea Indices Precos |
Kinea Renda and Kinea Indices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Renda and Kinea Indices
The main advantage of trading using opposite Kinea Renda and Kinea Indices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Renda position performs unexpectedly, Kinea Indices 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 Indices will offset losses from the drop in Kinea Indices' 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 Indices vs. Brio Multiestrategi Fundo | Kinea Indices vs. JPP Allocation Mogno | Kinea Indices vs. Itau Fundo De | Kinea Indices vs. HEDGE SEED 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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