Correlation Between Kinea Oportunidades and FDO INV
Can any of the company-specific risk be diversified away by investing in both Kinea Oportunidades and FDO INV 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 Oportunidades and FDO INV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinea Oportunidades Real and FDO INV IMOB, you can compare the effects of market volatilities on Kinea Oportunidades and FDO INV 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 Oportunidades with a short position of FDO INV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Oportunidades and FDO INV.
Diversification Opportunities for Kinea Oportunidades and FDO INV
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinea and FDO is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Oportunidades Real and FDO INV IMOB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDO INV IMOB and Kinea Oportunidades 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 Oportunidades Real are associated (or correlated) with FDO INV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDO INV IMOB has no effect on the direction of Kinea Oportunidades i.e., Kinea Oportunidades and FDO INV go up and down completely randomly.
Pair Corralation between Kinea Oportunidades and FDO INV
Assuming the 90 days trading horizon Kinea Oportunidades Real is expected to under-perform the FDO INV. But the fund apears to be less risky and, when comparing its historical volatility, Kinea Oportunidades Real is 59.39 times less risky than FDO INV. The fund trades about -0.07 of its potential returns per unit of risk. The FDO INV IMOB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 20.00 in FDO INV IMOB on September 14, 2024 and sell it today you would earn a total of 144,980 from holding FDO INV IMOB or generate 724900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
Kinea Oportunidades Real vs. FDO INV IMOB
Performance |
| Timeline |
| Kinea Oportunidades Real |
| FDO INV IMOB |
Kinea Oportunidades and FDO INV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Oportunidades and FDO INV
The main advantage of trading using opposite Kinea Oportunidades and FDO INV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Oportunidades position performs unexpectedly, FDO INV 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 FDO INV will offset losses from the drop in FDO INV's long position.| Kinea Oportunidades vs. Kinea Indices Precos | Kinea Oportunidades vs. Kinea Creditas Fundo | Kinea Oportunidades vs. Kinea Securities Fundo | Kinea Oportunidades vs. Kinea Renda Imobiliria |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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