Correlation Between Fundo Investimento and KeyCorp
Can any of the company-specific risk be diversified away by investing in both Fundo Investimento and KeyCorp 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 KeyCorp 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 KeyCorp, you can compare the effects of market volatilities on Fundo Investimento and KeyCorp 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 KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo Investimento and KeyCorp.
Diversification Opportunities for Fundo Investimento and KeyCorp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fundo and KeyCorp is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fundo Investimento Imobiliario and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp 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 KeyCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KeyCorp has no effect on the direction of Fundo Investimento i.e., Fundo Investimento and KeyCorp go up and down completely randomly.
Pair Corralation between Fundo Investimento and KeyCorp
Assuming the 90 days trading horizon Fundo Investimento Imobiliario is expected to under-perform the KeyCorp. But the fund apears to be less risky and, when comparing its historical volatility, Fundo Investimento Imobiliario is 4.99 times less risky than KeyCorp. The fund trades about -0.12 of its potential returns per unit of risk. The KeyCorp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,486 in KeyCorp on September 4, 2024 and sell it today you would earn a total of 2,046 from holding KeyCorp or generate 21.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundo Investimento Imobiliario vs. KeyCorp
Performance |
| Timeline |
| Fundo Investimento |
| KeyCorp |
Fundo Investimento and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundo Investimento and KeyCorp
The main advantage of trading using opposite Fundo Investimento and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundo Investimento position performs unexpectedly, KeyCorp 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 KeyCorp will offset losses from the drop in KeyCorp'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 |
| KeyCorp vs. Banco Santander Chile | KeyCorp vs. Fundo Investimento Imobiliario | KeyCorp vs. Fras le SA | KeyCorp vs. Western Digital |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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