Correlation Between Kinea Oportunidades and Hospital Nossa
Can any of the company-specific risk be diversified away by investing in both Kinea Oportunidades and Hospital Nossa 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 Hospital Nossa 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 Hospital Nossa Senhora, you can compare the effects of market volatilities on Kinea Oportunidades and Hospital Nossa 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 Hospital Nossa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Oportunidades and Hospital Nossa.
Diversification Opportunities for Kinea Oportunidades and Hospital Nossa
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinea and Hospital is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Oportunidades Real and Hospital Nossa Senhora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hospital Nossa Senhora 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 Hospital Nossa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hospital Nossa Senhora has no effect on the direction of Kinea Oportunidades i.e., Kinea Oportunidades and Hospital Nossa go up and down completely randomly.
Pair Corralation between Kinea Oportunidades and Hospital Nossa
Assuming the 90 days trading horizon Kinea Oportunidades Real is expected to generate 2.1 times more return on investment than Hospital Nossa. However, Kinea Oportunidades is 2.1 times more volatile than Hospital Nossa Senhora. It trades about -0.03 of its potential returns per unit of risk. Hospital Nossa Senhora is currently generating about -0.12 per unit of risk. If you would invest 7,811 in Kinea Oportunidades Real on September 19, 2024 and sell it today you would lose (100.00) from holding Kinea Oportunidades Real or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kinea Oportunidades Real vs. Hospital Nossa Senhora
Performance |
| Timeline |
| Kinea Oportunidades Real |
| Hospital Nossa Senhora |
Kinea Oportunidades and Hospital Nossa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Oportunidades and Hospital Nossa
The main advantage of trading using opposite Kinea Oportunidades and Hospital Nossa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Oportunidades position performs unexpectedly, Hospital Nossa 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 Hospital Nossa will offset losses from the drop in Hospital Nossa's long position.| Kinea Oportunidades vs. BTG Pactual Logstica | Kinea Oportunidades vs. Plano Plano Desenvolvimento | Kinea Oportunidades vs. Companhia Habitasul de | Kinea Oportunidades vs. FDO INV IMOB |
| Hospital Nossa vs. Maxi Renda Fundo | Hospital Nossa vs. Scp Fundo De | Hospital Nossa vs. EXES FUNDO DE | Hospital Nossa vs. TRX Renda 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |