Correlation Between Luggo Fundo and Kinea Hedge
Can any of the company-specific risk be diversified away by investing in both Luggo Fundo and Kinea Hedge 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 Luggo Fundo and Kinea Hedge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luggo Fundo De and Kinea Hedge Fund, you can compare the effects of market volatilities on Luggo Fundo and Kinea Hedge 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 Luggo Fundo with a short position of Kinea Hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luggo Fundo and Kinea Hedge.
Diversification Opportunities for Luggo Fundo and Kinea Hedge
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luggo and Kinea is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Luggo Fundo De and Kinea Hedge Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Hedge Fund and Luggo Fundo 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 Luggo Fundo De are associated (or correlated) with Kinea Hedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Hedge Fund has no effect on the direction of Luggo Fundo i.e., Luggo Fundo and Kinea Hedge go up and down completely randomly.
Pair Corralation between Luggo Fundo and Kinea Hedge
Assuming the 90 days trading horizon Luggo Fundo De is expected to generate 1.15 times more return on investment than Kinea Hedge. However, Luggo Fundo is 1.15 times more volatile than Kinea Hedge Fund. It trades about -0.17 of its potential returns per unit of risk. Kinea Hedge Fund is currently generating about -0.27 per unit of risk. If you would invest 6,990 in Luggo Fundo De on September 3, 2024 and sell it today you would lose (190.00) from holding Luggo Fundo De or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luggo Fundo De vs. Kinea Hedge Fund
Performance |
| Timeline |
| Luggo Fundo De |
| Kinea Hedge Fund |
Luggo Fundo and Kinea Hedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luggo Fundo and Kinea Hedge
The main advantage of trading using opposite Luggo Fundo and Kinea Hedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luggo Fundo position performs unexpectedly, Kinea Hedge 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 Kinea Hedge will offset losses from the drop in Kinea Hedge's long position.| Luggo Fundo vs. Fundo Investimento Imobiliario | Luggo Fundo vs. Fras le SA | Luggo Fundo vs. Western Digital | Luggo Fundo vs. Clave Indices De |
| Kinea Hedge vs. Energisa SA | Kinea Hedge vs. BTG Pactual Logstica | Kinea Hedge vs. Plano Plano Desenvolvimento | Kinea Hedge 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |