Correlation Between Kinea Oportunidades and Kinea High
Can any of the company-specific risk be diversified away by investing in both Kinea Oportunidades and Kinea High 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 Kinea High 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 Kinea High Yield, you can compare the effects of market volatilities on Kinea Oportunidades and Kinea High 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 Kinea High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Oportunidades and Kinea High.
Diversification Opportunities for Kinea Oportunidades and Kinea High
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinea and Kinea is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Oportunidades Real and Kinea High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea High Yield 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 Kinea High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea High Yield has no effect on the direction of Kinea Oportunidades i.e., Kinea Oportunidades and Kinea High go up and down completely randomly.
Pair Corralation between Kinea Oportunidades and Kinea High
Assuming the 90 days trading horizon Kinea Oportunidades Real is expected to under-perform the Kinea High. In addition to that, Kinea Oportunidades is 2.2 times more volatile than Kinea High Yield. It trades about -0.03 of its total potential returns per unit of risk. Kinea High Yield is currently generating about 0.04 per unit of volatility. If you would invest 9,636 in Kinea High Yield on September 2, 2024 and sell it today you would earn a total of 603.00 from holding Kinea High Yield or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 66.04% |
| Values | Daily Returns |
Kinea Oportunidades Real vs. Kinea High Yield
Performance |
| Timeline |
| Kinea Oportunidades Real |
| Kinea High Yield |
Kinea Oportunidades and Kinea High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Oportunidades and Kinea High
The main advantage of trading using opposite Kinea Oportunidades and Kinea High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Oportunidades position performs unexpectedly, Kinea High 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 High will offset losses from the drop in Kinea High's long position.| Kinea Oportunidades vs. Luggo Fundo De | Kinea Oportunidades vs. Ourinvest Jpp Fundo | Kinea Oportunidades vs. Brio Multiestrategi Fundo | Kinea Oportunidades vs. HEDGE SEED FUNDO |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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