Correlation Between Fundo Investimento and Af Invest
Can any of the company-specific risk be diversified away by investing in both Fundo Investimento and Af Invest 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 Investimento and Af Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundo Investimento Imobiliario and Af Invest Cri, you can compare the effects of market volatilities on Fundo Investimento and Af Invest 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 Investimento with a short position of Af Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo Investimento and Af Invest.
Diversification Opportunities for Fundo Investimento and Af Invest
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fundo and AFHI11 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fundo Investimento Imobiliario and Af Invest Cri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Af Invest Cri and Fundo Investimento 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 Investimento Imobiliario are associated (or correlated) with Af Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Af Invest Cri has no effect on the direction of Fundo Investimento i.e., Fundo Investimento and Af Invest go up and down completely randomly.
Pair Corralation between Fundo Investimento and Af Invest
Assuming the 90 days trading horizon Fundo Investimento Imobiliario is expected to under-perform the Af Invest. In addition to that, Fundo Investimento is 1.49 times more volatile than Af Invest Cri. It trades about -0.03 of its total potential returns per unit of risk. Af Invest Cri is currently generating about -0.03 per unit of volatility. If you would invest 9,566 in Af Invest Cri on September 4, 2024 and sell it today you would lose (271.00) from holding Af Invest Cri or give up 2.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Fundo Investimento Imobiliario vs. Af Invest Cri
Performance |
| Timeline |
| Fundo Investimento |
| Af Invest Cri |
Fundo Investimento and Af Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundo Investimento and Af Invest
The main advantage of trading using opposite Fundo Investimento and Af Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundo Investimento position performs unexpectedly, Af Invest 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 Af Invest will offset losses from the drop in Af Invest's long position.| Fundo Investimento vs. Fras le SA | Fundo Investimento vs. Western Digital | Fundo Investimento vs. Clave Indices De | Fundo Investimento vs. BTG Pactual Logstica |
| Af Invest vs. WHG REAL ESTATE | Af Invest vs. Trx Real Estate | Af Invest vs. Hedge Real Estate | Af Invest vs. JS Real Estate |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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