Correlation Between SDI Properties and Kinea Hedge
Can any of the company-specific risk be diversified away by investing in both SDI Properties 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 SDI Properties and Kinea Hedge 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 Kinea Hedge Fund, you can compare the effects of market volatilities on SDI Properties 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 SDI Properties with a short position of Kinea Hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of SDI Properties and Kinea Hedge.
Diversification Opportunities for SDI Properties and Kinea Hedge
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SDI and Kinea is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SDI Properties Fundo 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 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 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 SDI Properties i.e., SDI Properties and Kinea Hedge go up and down completely randomly.
Pair Corralation between SDI Properties and Kinea Hedge
Assuming the 90 days trading horizon SDI Properties Fundo is expected to generate 1.01 times more return on investment than Kinea Hedge. However, SDI Properties is 1.01 times more volatile than Kinea Hedge Fund. It trades about 0.02 of its potential returns per unit of risk. Kinea Hedge Fund is currently generating about -0.01 per unit of risk. If you would invest 7,860 in SDI Properties Fundo on September 2, 2024 and sell it today you would earn a total of 420.00 from holding SDI Properties Fundo or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.83% |
| Values | Daily Returns |
SDI Properties Fundo vs. Kinea Hedge Fund
Performance |
| Timeline |
| SDI Properties Fundo |
| Kinea Hedge Fund |
SDI Properties and Kinea Hedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SDI Properties and Kinea Hedge
The main advantage of trading using opposite SDI Properties and Kinea Hedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SDI Properties 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.| SDI Properties vs. Energisa SA | SDI Properties vs. BTG Pactual Logstica | SDI Properties vs. Plano Plano Desenvolvimento | SDI Properties vs. Companhia Habitasul de |
| Kinea Hedge vs. Domo Fundo de | Kinea Hedge vs. Aesapar Fundo de | Kinea Hedge vs. Ourinvest Jpp Fundo | Kinea Hedge 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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