Correlation Between Legatus Shoppings and CSHG Real
Can any of the company-specific risk be diversified away by investing in both Legatus Shoppings and CSHG Real 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 Legatus Shoppings and CSHG Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legatus Shoppings Fundo and CSHG Real Estate, you can compare the effects of market volatilities on Legatus Shoppings and CSHG Real 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 Legatus Shoppings with a short position of CSHG Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legatus Shoppings and CSHG Real.
Diversification Opportunities for Legatus Shoppings and CSHG Real
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Legatus and CSHG is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Legatus Shoppings Fundo and CSHG Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSHG Real Estate and Legatus Shoppings 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 Legatus Shoppings Fundo are associated (or correlated) with CSHG Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSHG Real Estate has no effect on the direction of Legatus Shoppings i.e., Legatus Shoppings and CSHG Real go up and down completely randomly.
Pair Corralation between Legatus Shoppings and CSHG Real
Assuming the 90 days trading horizon Legatus Shoppings Fundo is expected to generate 0.51 times more return on investment than CSHG Real. However, Legatus Shoppings Fundo is 1.98 times less risky than CSHG Real. It trades about -0.18 of its potential returns per unit of risk. CSHG Real Estate is currently generating about -0.18 per unit of risk. If you would invest 11,186 in Legatus Shoppings Fundo on August 31, 2024 and sell it today you would lose (187.00) from holding Legatus Shoppings Fundo or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legatus Shoppings Fundo vs. CSHG Real Estate
Performance |
| Timeline |
| Legatus Shoppings Fundo |
| CSHG Real Estate |
Legatus Shoppings and CSHG Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legatus Shoppings and CSHG Real
The main advantage of trading using opposite Legatus Shoppings and CSHG Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legatus Shoppings position performs unexpectedly, CSHG Real 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 CSHG Real will offset losses from the drop in CSHG Real's long position.| Legatus Shoppings vs. Energisa SA | Legatus Shoppings vs. BTG Pactual Logstica | Legatus Shoppings vs. Plano Plano Desenvolvimento | Legatus Shoppings vs. Companhia Habitasul de |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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