Correlation Between SDI Properties and JFL Living
Can any of the company-specific risk be diversified away by investing in both SDI Properties and JFL Living 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 SDI Properties and JFL Living into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SDI Properties Fundo and JFL Living Fundo, you can compare the effects of market volatilities on SDI Properties and JFL Living 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 SDI Properties with a short position of JFL Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of SDI Properties and JFL Living.
Diversification Opportunities for SDI Properties and JFL Living
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SDI and JFL is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SDI Properties Fundo and JFL Living Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JFL Living Fundo and SDI Properties 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 SDI Properties Fundo are associated (or correlated) with JFL Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JFL Living Fundo has no effect on the direction of SDI Properties i.e., SDI Properties and JFL Living go up and down completely randomly.
Pair Corralation between SDI Properties and JFL Living
Assuming the 90 days trading horizon SDI Properties Fundo is expected to under-perform the JFL Living. But the fund apears to be less risky and, when comparing its historical volatility, SDI Properties Fundo is 1.37 times less risky than JFL Living. The fund trades about -0.12 of its potential returns per unit of risk. The JFL Living Fundo is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 7,402 in JFL Living Fundo on August 30, 2024 and sell it today you would lose (136.00) from holding JFL Living Fundo or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SDI Properties Fundo vs. JFL Living Fundo
Performance |
| Timeline |
| SDI Properties Fundo |
| JFL Living Fundo |
SDI Properties and JFL Living Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SDI Properties and JFL Living
The main advantage of trading using opposite SDI Properties and JFL Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SDI Properties position performs unexpectedly, JFL Living 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 JFL Living will offset losses from the drop in JFL Living's long position.| SDI Properties vs. Energisa SA | SDI Properties vs. BTG Pactual Logstica | SDI Properties vs. Plano Plano Desenvolvimento | SDI Properties vs. The Procter Gamble |
| JFL Living vs. Domo Fundo de | JFL Living vs. Aesapar Fundo de | JFL Living vs. Ourinvest Jpp Fundo | JFL Living vs. Loft II 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |