Correlation Between RB Capital and XP Infra
Can any of the company-specific risk be diversified away by investing in both RB Capital and XP Infra 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 RB Capital and XP Infra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RB Capital Office and XP Infra Fund, you can compare the effects of market volatilities on RB Capital and XP Infra 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 RB Capital with a short position of XP Infra. Check out your portfolio center. Please also check ongoing floating volatility patterns of RB Capital and XP Infra.
Diversification Opportunities for RB Capital and XP Infra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RBCO11 and XPIE11 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RB Capital Office and XP Infra Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XP Infra Fund and RB Capital 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 RB Capital Office are associated (or correlated) with XP Infra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XP Infra Fund has no effect on the direction of RB Capital i.e., RB Capital and XP Infra go up and down completely randomly.
Pair Corralation between RB Capital and XP Infra
If you would invest 4,400 in RB Capital Office on August 30, 2024 and sell it today you would earn a total of 0.00 from holding RB Capital Office or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
RB Capital Office vs. XP Infra Fund
Performance |
| Timeline |
| RB Capital Office |
| XP Infra Fund |
RB Capital and XP Infra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RB Capital and XP Infra
The main advantage of trading using opposite RB Capital and XP Infra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RB Capital position performs unexpectedly, XP Infra 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 XP Infra will offset losses from the drop in XP Infra's long position.| RB Capital vs. Energisa SA | RB Capital vs. BTG Pactual Logstica | RB Capital vs. Plano Plano Desenvolvimento | RB Capital vs. The Procter Gamble |
| XP Infra vs. Energisa SA | XP Infra vs. BTG Pactual Logstica | XP Infra vs. Plano Plano Desenvolvimento | XP Infra 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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