Correlation Between FUNDO DE and Kinea Hedge
Can any of the company-specific risk be diversified away by investing in both FUNDO DE and Kinea Hedge 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 FUNDO DE and Kinea Hedge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUNDO DE INVESTIMENTO and Kinea Hedge Fund, you can compare the effects of market volatilities on FUNDO DE and Kinea Hedge 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 FUNDO DE with a short position of Kinea Hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUNDO DE and Kinea Hedge.
Diversification Opportunities for FUNDO DE and Kinea Hedge
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FUNDO and Kinea is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding FUNDO DE INVESTIMENTO and Kinea Hedge Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Hedge Fund and FUNDO DE 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 FUNDO DE INVESTIMENTO are associated (or correlated) with Kinea Hedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Hedge Fund has no effect on the direction of FUNDO DE i.e., FUNDO DE and Kinea Hedge go up and down completely randomly.
Pair Corralation between FUNDO DE and Kinea Hedge
Assuming the 90 days trading horizon FUNDO DE INVESTIMENTO is expected to under-perform the Kinea Hedge. In addition to that, FUNDO DE is 1.06 times more volatile than Kinea Hedge Fund. It trades about -0.19 of its total potential returns per unit of risk. Kinea Hedge Fund is currently generating about -0.01 per unit of volatility. If you would invest 8,711 in Kinea Hedge Fund on August 26, 2024 and sell it today you would lose (36.00) from holding Kinea Hedge Fund or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUNDO DE INVESTIMENTO vs. Kinea Hedge Fund
Performance |
| Timeline |
| FUNDO DE INVESTIMENTO |
| Kinea Hedge Fund |
FUNDO DE and Kinea Hedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUNDO DE and Kinea Hedge
The main advantage of trading using opposite FUNDO DE and Kinea Hedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUNDO DE position performs unexpectedly, Kinea Hedge 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 Kinea Hedge will offset losses from the drop in Kinea Hedge's long position.| FUNDO DE vs. BTG Pactual Logstica | FUNDO DE vs. Plano Plano Desenvolvimento | FUNDO DE vs. Companhia Habitasul de | FUNDO DE vs. The Procter Gamble |
| Kinea Hedge vs. BTG Pactual Logstica | Kinea Hedge vs. Plano Plano Desenvolvimento | Kinea Hedge vs. Companhia Habitasul de | Kinea Hedge 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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