Correlation Between Kinea Securities and Kinea Fundo
Can any of the company-specific risk be diversified away by investing in both Kinea Securities 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 Securities 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 Securities Fundo and Kinea Fundo Fundos, you can compare the effects of market volatilities on Kinea Securities 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 Securities with a short position of Kinea Fundo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Securities and Kinea Fundo.
Diversification Opportunities for Kinea Securities and Kinea Fundo
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinea and Kinea is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Securities Fundo 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 Securities 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 Securities Fundo 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 Securities i.e., Kinea Securities and Kinea Fundo go up and down completely randomly.
Pair Corralation between Kinea Securities and Kinea Fundo
Assuming the 90 days trading horizon Kinea Securities Fundo is expected to under-perform the Kinea Fundo. But the fund apears to be less risky and, when comparing its historical volatility, Kinea Securities Fundo is 1.11 times less risky than Kinea Fundo. The fund trades about -0.23 of its potential returns per unit of risk. The Kinea Fundo Fundos is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 7,502 in Kinea Fundo Fundos on August 30, 2024 and sell it today you would earn a total of 293.00 from holding Kinea Fundo Fundos or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinea Securities Fundo vs. Kinea Fundo Fundos
Performance |
| Timeline |
| Kinea Securities Fundo |
| Kinea Fundo Fundos |
Kinea Securities and Kinea Fundo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Securities and Kinea Fundo
The main advantage of trading using opposite Kinea Securities and Kinea Fundo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Securities 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 Securities vs. Kinea Oportunidades Real | Kinea Securities vs. Kinea Indices Precos | Kinea Securities vs. Kinea Creditas Fundo | Kinea Securities vs. Kinea Renda Imobiliria |
| Kinea Fundo vs. Kinea Oportunidades Real | Kinea Fundo vs. Kinea Indices Precos | Kinea Fundo vs. Kinea Creditas Fundo | Kinea Fundo 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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