Correlation Between LESTE FDO and CM Hospitalar
Can any of the company-specific risk be diversified away by investing in both LESTE FDO and CM Hospitalar 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 LESTE FDO and CM Hospitalar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LESTE FDO INV and CM Hospitalar SA, you can compare the effects of market volatilities on LESTE FDO and CM Hospitalar 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 LESTE FDO with a short position of CM Hospitalar. Check out your portfolio center. Please also check ongoing floating volatility patterns of LESTE FDO and CM Hospitalar.
Diversification Opportunities for LESTE FDO and CM Hospitalar
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between LESTE and VVEO3 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding LESTE FDO INV and CM Hospitalar SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM Hospitalar SA and LESTE FDO 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 LESTE FDO INV are associated (or correlated) with CM Hospitalar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM Hospitalar SA has no effect on the direction of LESTE FDO i.e., LESTE FDO and CM Hospitalar go up and down completely randomly.
Pair Corralation between LESTE FDO and CM Hospitalar
Assuming the 90 days trading horizon LESTE FDO INV is expected to generate 0.39 times more return on investment than CM Hospitalar. However, LESTE FDO INV is 2.59 times less risky than CM Hospitalar. It trades about -0.01 of its potential returns per unit of risk. CM Hospitalar SA is currently generating about -0.1 per unit of risk. If you would invest 7,969 in LESTE FDO INV on September 12, 2024 and sell it today you would lose (873.00) from holding LESTE FDO INV or give up 10.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
LESTE FDO INV vs. CM Hospitalar SA
Performance |
| Timeline |
| LESTE FDO INV |
| CM Hospitalar SA |
LESTE FDO and CM Hospitalar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LESTE FDO and CM Hospitalar
The main advantage of trading using opposite LESTE FDO and CM Hospitalar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LESTE FDO position performs unexpectedly, CM Hospitalar 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 CM Hospitalar will offset losses from the drop in CM Hospitalar's long position.| LESTE FDO vs. FDO INV IMOB | LESTE FDO vs. SUPREMO FUNDO DE | LESTE FDO vs. Real Estate Investment | LESTE FDO vs. NAVI CRDITO IMOBILIRIO |
| CM Hospitalar vs. Fundo Investimento Imobiliario | CM Hospitalar vs. LESTE FDO INV | CM Hospitalar vs. Fras le SA | CM Hospitalar vs. Western Digital |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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