Correlation Between Kinea Oportunidades and LIFE CAPITAL
Can any of the company-specific risk be diversified away by investing in both Kinea Oportunidades and LIFE CAPITAL 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 LIFE CAPITAL 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 LIFE CAPITAL PARTNERS, you can compare the effects of market volatilities on Kinea Oportunidades and LIFE CAPITAL 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 LIFE CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Oportunidades and LIFE CAPITAL.
Diversification Opportunities for Kinea Oportunidades and LIFE CAPITAL
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinea and LIFE is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Oportunidades Real and LIFE CAPITAL PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFE CAPITAL PARTNERS 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 LIFE CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFE CAPITAL PARTNERS has no effect on the direction of Kinea Oportunidades i.e., Kinea Oportunidades and LIFE CAPITAL go up and down completely randomly.
Pair Corralation between Kinea Oportunidades and LIFE CAPITAL
Assuming the 90 days trading horizon Kinea Oportunidades Real is expected to under-perform the LIFE CAPITAL. But the fund apears to be less risky and, when comparing its historical volatility, Kinea Oportunidades Real is 1.0 times less risky than LIFE CAPITAL. The fund trades about -0.03 of its potential returns per unit of risk. The LIFE CAPITAL PARTNERS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 931.00 in LIFE CAPITAL PARTNERS on August 24, 2024 and sell it today you would earn a total of 13.00 from holding LIFE CAPITAL PARTNERS or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 57.93% |
| Values | Daily Returns |
Kinea Oportunidades Real vs. LIFE CAPITAL PARTNERS
Performance |
| Timeline |
| Kinea Oportunidades Real |
| LIFE CAPITAL PARTNERS |
Kinea Oportunidades and LIFE CAPITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Oportunidades and LIFE CAPITAL
The main advantage of trading using opposite Kinea Oportunidades and LIFE CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Oportunidades position performs unexpectedly, LIFE CAPITAL 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 LIFE CAPITAL will offset losses from the drop in LIFE CAPITAL's long position.| Kinea Oportunidades vs. Kinea Hedge Fund | Kinea Oportunidades vs. Kinea Indices Precos | Kinea Oportunidades vs. Kinea Creditas Fundo | Kinea Oportunidades vs. Kinea High Yield |
| LIFE CAPITAL vs. BTG Pactual Logstica | LIFE CAPITAL vs. Plano Plano Desenvolvimento | LIFE CAPITAL vs. Companhia Habitasul de | LIFE CAPITAL vs. The Procter Gamble |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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