Correlation Between Vinci Shopping and Xp Malls
Can any of the company-specific risk be diversified away by investing in both Vinci Shopping and Xp Malls 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 Vinci Shopping and Xp Malls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinci Shopping Centers and Xp Malls Fundo, you can compare the effects of market volatilities on Vinci Shopping and Xp Malls 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 Vinci Shopping with a short position of Xp Malls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinci Shopping and Xp Malls.
Diversification Opportunities for Vinci Shopping and Xp Malls
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vinci and XPML11 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Vinci Shopping Centers and Xp Malls Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Malls Fundo and Vinci Shopping 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 Vinci Shopping Centers are associated (or correlated) with Xp Malls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Malls Fundo has no effect on the direction of Vinci Shopping i.e., Vinci Shopping and Xp Malls go up and down completely randomly.
Pair Corralation between Vinci Shopping and Xp Malls
Assuming the 90 days trading horizon Vinci Shopping Centers is expected to generate 2.23 times more return on investment than Xp Malls. However, Vinci Shopping is 2.23 times more volatile than Xp Malls Fundo. It trades about 0.02 of its potential returns per unit of risk. Xp Malls Fundo is currently generating about 0.02 per unit of risk. If you would invest 8,502 in Vinci Shopping Centers on November 2, 2024 and sell it today you would earn a total of 927.00 from holding Vinci Shopping Centers or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vinci Shopping Centers vs. Xp Malls Fundo
Performance |
| Timeline |
| Vinci Shopping Centers |
| Xp Malls Fundo |
Vinci Shopping and Xp Malls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinci Shopping and Xp Malls
The main advantage of trading using opposite Vinci Shopping and Xp Malls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinci Shopping position performs unexpectedly, Xp Malls 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 Malls will offset losses from the drop in Xp Malls' long position.| Vinci Shopping vs. Vinci Corporate Fundo | Vinci Shopping vs. Vinci Imoveis Urbanos | Vinci Shopping vs. Vinci Instrumentos Financeiros | Vinci Shopping vs. FDO INV IMOB |
| Xp Malls vs. FDO INV IMOB | Xp Malls vs. SUPREMO FUNDO DE | Xp Malls vs. Real Estate Investment | Xp Malls vs. NAVI CRDITO IMOBILIRIO |
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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