Correlation Between Real Estate and Fator IFIX
Can any of the company-specific risk be diversified away by investing in both Real Estate and Fator IFIX 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 Real Estate and Fator IFIX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Estate Investment and Fator IFIX Fundo, you can compare the effects of market volatilities on Real Estate and Fator IFIX 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 Real Estate with a short position of Fator IFIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Estate and Fator IFIX.
Diversification Opportunities for Real Estate and Fator IFIX
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Real and Fator is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Real Estate Investment and Fator IFIX Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fator IFIX Fundo and Real Estate 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 Real Estate Investment are associated (or correlated) with Fator IFIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fator IFIX Fundo has no effect on the direction of Real Estate i.e., Real Estate and Fator IFIX go up and down completely randomly.
Pair Corralation between Real Estate and Fator IFIX
Assuming the 90 days trading horizon Real Estate is expected to generate 2.44 times less return on investment than Fator IFIX. But when comparing it to its historical volatility, Real Estate Investment is 1.32 times less risky than Fator IFIX. It trades about 0.01 of its potential returns per unit of risk. Fator IFIX Fundo is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,027 in Fator IFIX Fundo on November 9, 2024 and sell it today you would earn a total of 329.00 from holding Fator IFIX Fundo or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Real Estate Investment vs. Fator IFIX Fundo
Performance |
| Timeline |
| Real Estate Investment |
| Fator IFIX Fundo |
Real Estate and Fator IFIX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Real Estate and Fator IFIX
The main advantage of trading using opposite Real Estate and Fator IFIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Estate position performs unexpectedly, Fator IFIX 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 Fator IFIX will offset losses from the drop in Fator IFIX's long position.| Real Estate vs. Trx Real Estate | Real Estate vs. Brio Real Estate | Real Estate vs. ZAVIT REAL ESTATE | Real Estate vs. BRIO REAL ESTATE |
| Fator IFIX vs. Fator Verit Fundo | Fator IFIX vs. FDO INV IMOB | Fator IFIX vs. SUPREMO FUNDO DE | Fator IFIX vs. Real Estate 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |