Correlation Between Xp Malls and Cshg Logistica
Can any of the company-specific risk be diversified away by investing in both Xp Malls and Cshg Logistica 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 Xp Malls and Cshg Logistica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Malls Fundo and Cshg Logistica , you can compare the effects of market volatilities on Xp Malls and Cshg Logistica 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 Xp Malls with a short position of Cshg Logistica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp Malls and Cshg Logistica.
Diversification Opportunities for Xp Malls and Cshg Logistica
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XPML11 and Cshg is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xp Malls Fundo and Cshg Logistica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cshg Logistica and Xp Malls 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 Xp Malls Fundo are associated (or correlated) with Cshg Logistica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cshg Logistica has no effect on the direction of Xp Malls i.e., Xp Malls and Cshg Logistica go up and down completely randomly.
Pair Corralation between Xp Malls and Cshg Logistica
Assuming the 90 days trading horizon Xp Malls is expected to generate 1.95 times less return on investment than Cshg Logistica. But when comparing it to its historical volatility, Xp Malls Fundo is 1.87 times less risky than Cshg Logistica. It trades about 0.02 of its potential returns per unit of risk. Cshg Logistica is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 13,455 in Cshg Logistica on November 2, 2024 and sell it today you would earn a total of 1,535 from holding Cshg Logistica or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xp Malls Fundo vs. Cshg Logistica
Performance |
| Timeline |
| Xp Malls Fundo |
| Cshg Logistica |
Xp Malls and Cshg Logistica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp Malls and Cshg Logistica
The main advantage of trading using opposite Xp Malls and Cshg Logistica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp Malls position performs unexpectedly, Cshg Logistica 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 Cshg Logistica will offset losses from the drop in Cshg Logistica's long position.| Xp Malls vs. FDO INV IMOB | Xp Malls vs. SUPREMO FUNDO DE | Xp Malls vs. Real Estate Investment | Xp Malls vs. NAVI CRDITO IMOBILIRIO |
| Cshg Logistica vs. Cshg Jhsf Prime | Cshg Logistica vs. Cshg Atrium Shopping | Cshg Logistica vs. FDO INV IMOB | Cshg Logistica vs. SUPREMO FUNDO 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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