Correlation Between Fundo Investimento and Capitania Agro
Can any of the company-specific risk be diversified away by investing in both Fundo Investimento and Capitania Agro 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 Capitania Agro 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 Capitania Agro Strategies, you can compare the effects of market volatilities on Fundo Investimento and Capitania Agro 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 Capitania Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo Investimento and Capitania Agro.
Diversification Opportunities for Fundo Investimento and Capitania Agro
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fundo and Capitania is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fundo Investimento Imobiliario and Capitania Agro Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capitania Agro Strategies 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 Capitania Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capitania Agro Strategies has no effect on the direction of Fundo Investimento i.e., Fundo Investimento and Capitania Agro go up and down completely randomly.
Pair Corralation between Fundo Investimento and Capitania Agro
Assuming the 90 days trading horizon Fundo Investimento Imobiliario is expected to under-perform the Capitania Agro. But the fund apears to be less risky and, when comparing its historical volatility, Fundo Investimento Imobiliario is 1.11 times less risky than Capitania Agro. The fund trades about -0.05 of its potential returns per unit of risk. The Capitania Agro Strategies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 635.00 in Capitania Agro Strategies on September 3, 2024 and sell it today you would earn a total of 17.00 from holding Capitania Agro Strategies or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundo Investimento Imobiliario vs. Capitania Agro Strategies
Performance |
| Timeline |
| Fundo Investimento |
| Capitania Agro Strategies |
Fundo Investimento and Capitania Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundo Investimento and Capitania Agro
The main advantage of trading using opposite Fundo Investimento and Capitania Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundo Investimento position performs unexpectedly, Capitania Agro 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 Capitania Agro will offset losses from the drop in Capitania Agro's long position.| Fundo Investimento vs. BTG Pactual Logstica | Fundo Investimento vs. KILIMA VOLKANO RECEBVEIS | Fundo Investimento vs. DEVANT PROPERTIES FUNDO | Fundo Investimento vs. SPARTA FIAGRO FDO |
| Capitania Agro vs. Fundo Investimento Imobiliario | Capitania Agro vs. Fras le SA | Capitania Agro vs. Western Digital | Capitania Agro vs. Clave Indices De |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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