Correlation Between Hospital Nossa and Maxi Renda
Can any of the company-specific risk be diversified away by investing in both Hospital Nossa and Maxi Renda 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 Hospital Nossa and Maxi Renda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hospital Nossa Senhora and Maxi Renda Fundo, you can compare the effects of market volatilities on Hospital Nossa and Maxi Renda 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 Hospital Nossa with a short position of Maxi Renda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hospital Nossa and Maxi Renda.
Diversification Opportunities for Hospital Nossa and Maxi Renda
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hospital and Maxi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hospital Nossa Senhora and Maxi Renda Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxi Renda Fundo and Hospital Nossa 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 Hospital Nossa Senhora are associated (or correlated) with Maxi Renda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxi Renda Fundo has no effect on the direction of Hospital Nossa i.e., Hospital Nossa and Maxi Renda go up and down completely randomly.
Pair Corralation between Hospital Nossa and Maxi Renda
Assuming the 90 days trading horizon Hospital Nossa Senhora is expected to under-perform the Maxi Renda. But the fund apears to be less risky and, when comparing its historical volatility, Hospital Nossa Senhora is 1.67 times less risky than Maxi Renda. The fund trades about -0.12 of its potential returns per unit of risk. The Maxi Renda Fundo is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 910.00 in Maxi Renda Fundo on September 19, 2024 and sell it today you would lose (12.00) from holding Maxi Renda Fundo or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hospital Nossa Senhora vs. Maxi Renda Fundo
Performance |
| Timeline |
| Hospital Nossa Senhora |
| Maxi Renda Fundo |
Hospital Nossa and Maxi Renda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hospital Nossa and Maxi Renda
The main advantage of trading using opposite Hospital Nossa and Maxi Renda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hospital Nossa position performs unexpectedly, Maxi Renda 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 Maxi Renda will offset losses from the drop in Maxi Renda's long position.| Hospital Nossa vs. Maxi Renda Fundo | Hospital Nossa vs. Scp Fundo De | Hospital Nossa vs. EXES FUNDO DE | Hospital Nossa vs. TRX Renda Fundo |
| Maxi Renda vs. Domo Fundo de | Maxi Renda vs. Aesapar Fundo de | Maxi Renda vs. FUNDO DE INVESTIMENTO | Maxi Renda vs. Ourinvest Jpp Fundo |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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