Correlation Between Lumia and JS ATIVOS

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Can any of the company-specific risk be diversified away by investing in both Lumia and JS ATIVOS 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 Lumia and JS ATIVOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumia and JS ATIVOS FINANCEIROS, you can compare the effects of market volatilities on Lumia and JS ATIVOS 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 Lumia with a short position of JS ATIVOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and JS ATIVOS.

Diversification Opportunities for Lumia and JS ATIVOS

-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Lumia and JSAF11 is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and JS ATIVOS FINANCEIROS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS ATIVOS FINANCEIROS and Lumia 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 Lumia are associated (or correlated) with JS ATIVOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS ATIVOS FINANCEIROS has no effect on the direction of Lumia i.e., Lumia and JS ATIVOS go up and down completely randomly.

Pair Corralation between Lumia and JS ATIVOS

Assuming the 90 days trading horizon Lumia is expected to under-perform the JS ATIVOS. In addition to that, Lumia is 3.59 times more volatile than JS ATIVOS FINANCEIROS. It trades about -0.33 of its total potential returns per unit of risk. JS ATIVOS FINANCEIROS is currently generating about -0.34 per unit of volatility. If you would invest  727.00  in JS ATIVOS FINANCEIROS on November 2, 2024 and sell it today you would lose (85.00) from holding JS ATIVOS FINANCEIROS or give up 11.69% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Lumia  vs.  JS ATIVOS FINANCEIROS

 Performance 
       Timeline  
Lumia 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Lumia are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Lumia exhibited solid returns over the last few months and may actually be approaching a breakup point.
JS ATIVOS FINANCEIROS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days JS ATIVOS FINANCEIROS has generated negative risk-adjusted returns adding no value to fund investors. Despite weak performance in the last few months, the Fund's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Lumia and JS ATIVOS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lumia and JS ATIVOS

The main advantage of trading using opposite Lumia and JS ATIVOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, JS ATIVOS 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 JS ATIVOS will offset losses from the drop in JS ATIVOS's long position.
The idea behind Lumia and JS ATIVOS FINANCEIROS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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