Correlation Between Kinea Securities and Kinea II
Can any of the company-specific risk be diversified away by investing in both Kinea Securities and Kinea II 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 II 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 II Real, you can compare the effects of market volatilities on Kinea Securities and Kinea II 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 II. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Securities and Kinea II.
Diversification Opportunities for Kinea Securities and Kinea II
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinea and Kinea is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Securities Fundo and Kinea II Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea II Real 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 II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea II Real has no effect on the direction of Kinea Securities i.e., Kinea Securities and Kinea II go up and down completely randomly.
Pair Corralation between Kinea Securities and Kinea II
Assuming the 90 days trading horizon Kinea Securities Fundo is expected to generate 0.17 times more return on investment than Kinea II. However, Kinea Securities Fundo is 6.03 times less risky than Kinea II. It trades about 0.05 of its potential returns per unit of risk. Kinea II Real is currently generating about -0.03 per unit of risk. If you would invest 758.00 in Kinea Securities Fundo on September 2, 2024 and sell it today you would earn a total of 104.00 from holding Kinea Securities Fundo or generate 13.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Kinea Securities Fundo vs. Kinea II Real
Performance |
| Timeline |
| Kinea Securities Fundo |
| Kinea II Real |
Kinea Securities and Kinea II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Securities and Kinea II
The main advantage of trading using opposite Kinea Securities and Kinea II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Securities position performs unexpectedly, Kinea II 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 II will offset losses from the drop in Kinea II'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 II vs. Kinea Oportunidades Real | Kinea II vs. Kinea Indices Precos | Kinea II vs. Kinea Creditas Fundo | Kinea II 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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