Correlation Between NAVI CRDITO and Loft II
Can any of the company-specific risk be diversified away by investing in both NAVI CRDITO and Loft II 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 NAVI CRDITO and Loft II into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAVI CRDITO IMOBILIRIO and Loft II Fundo, you can compare the effects of market volatilities on NAVI CRDITO and Loft II 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 NAVI CRDITO with a short position of Loft II. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAVI CRDITO and Loft II.
Diversification Opportunities for NAVI CRDITO and Loft II
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between NAVI and Loft is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding NAVI CRDITO IMOBILIRIO and Loft II Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loft II Fundo and NAVI CRDITO 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 NAVI CRDITO IMOBILIRIO are associated (or correlated) with Loft II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loft II Fundo has no effect on the direction of NAVI CRDITO i.e., NAVI CRDITO and Loft II go up and down completely randomly.
Pair Corralation between NAVI CRDITO and Loft II
Assuming the 90 days trading horizon NAVI CRDITO IMOBILIRIO is expected to generate 0.47 times more return on investment than Loft II. However, NAVI CRDITO IMOBILIRIO is 2.11 times less risky than Loft II. It trades about 0.01 of its potential returns per unit of risk. Loft II Fundo is currently generating about -0.04 per unit of risk. If you would invest 920.00 in NAVI CRDITO IMOBILIRIO on August 27, 2024 and sell it today you would lose (43.00) from holding NAVI CRDITO IMOBILIRIO or give up 4.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.75% |
| Values | Daily Returns |
NAVI CRDITO IMOBILIRIO vs. Loft II Fundo
Performance |
| Timeline |
| NAVI CRDITO IMOBILIRIO |
| Loft II Fundo |
NAVI CRDITO and Loft II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAVI CRDITO and Loft II
The main advantage of trading using opposite NAVI CRDITO and Loft II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAVI CRDITO position performs unexpectedly, Loft II 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 Loft II will offset losses from the drop in Loft II's long position.| NAVI CRDITO vs. BTG Pactual Logstica | NAVI CRDITO vs. Plano Plano Desenvolvimento | NAVI CRDITO vs. Companhia Habitasul de | NAVI CRDITO vs. The Procter Gamble |
| Loft II vs. BTG Pactual Logstica | Loft II vs. Plano Plano Desenvolvimento | Loft II vs. Companhia Habitasul de | Loft II vs. The Procter Gamble |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |