Correlation Between Kinea Oportunidades and BB Renda
Can any of the company-specific risk be diversified away by investing in both Kinea Oportunidades and BB Renda 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 BB Renda 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 BB Renda de, you can compare the effects of market volatilities on Kinea Oportunidades and BB Renda 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 BB Renda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Oportunidades and BB Renda.
Diversification Opportunities for Kinea Oportunidades and BB Renda
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinea and RNDP11 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Oportunidades Real and BB Renda de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Renda de 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 BB Renda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Renda de has no effect on the direction of Kinea Oportunidades i.e., Kinea Oportunidades and BB Renda go up and down completely randomly.
Pair Corralation between Kinea Oportunidades and BB Renda
Assuming the 90 days trading horizon Kinea Oportunidades is expected to generate 4.27 times less return on investment than BB Renda. But when comparing it to its historical volatility, Kinea Oportunidades Real is 2.44 times less risky than BB Renda. It trades about 0.13 of its potential returns per unit of risk. BB Renda de is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,930 in BB Renda de on November 28, 2024 and sell it today you would earn a total of 670.00 from holding BB Renda de or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kinea Oportunidades Real vs. BB Renda de
Performance |
| Timeline |
| Kinea Oportunidades Real |
| BB Renda de |
Kinea Oportunidades and BB Renda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Oportunidades and BB Renda
The main advantage of trading using opposite Kinea Oportunidades and BB Renda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Oportunidades position performs unexpectedly, BB Renda 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 BB Renda will offset losses from the drop in BB Renda'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 |
| BB Renda vs. FDO INV IMOB | BB Renda vs. SUPREMO FUNDO DE | BB Renda vs. Real Estate Investment | BB Renda vs. NAVI CRDITO IMOBILIRIO |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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