Correlation Between Cshg Atrium and Kinea Oportunidades

Can any of the company-specific risk be diversified away by investing in both Cshg Atrium and Kinea Oportunidades 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 Cshg Atrium and Kinea Oportunidades into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cshg Atrium Shopping and Kinea Oportunidades Real, you can compare the effects of market volatilities on Cshg Atrium and Kinea Oportunidades 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 Cshg Atrium with a short position of Kinea Oportunidades. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Atrium and Kinea Oportunidades.

Diversification Opportunities for Cshg Atrium and Kinea Oportunidades

-0.46

Correlation Coefficient

Cshg Atrium  Kinea Oportunidades

Very good diversification

The 3 months correlation between Cshg and Kinea is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Atrium Shopping and Kinea Oportunidades Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Oportunidades Real and Cshg Atrium 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 Cshg Atrium Shopping are associated (or correlated) with Kinea Oportunidades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Oportunidades Real has no effect on the direction of Cshg Atrium i.e., Cshg Atrium and Kinea Oportunidades go up and down completely randomly.

Pair Corralation between Cshg Atrium and Kinea Oportunidades

Assuming the 90 days trading horizon Cshg Atrium Shopping is expected to under-perform the Kinea Oportunidades. But the fund apears to be less risky and, when comparing its historical volatility, Cshg Atrium Shopping is 1.01 times less risky than Kinea Oportunidades. The fund trades about -0.04 of its potential returns per unit of risk. The Kinea Oportunidades Real is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  7,950  in Kinea Oportunidades Real on December 30, 2024 and sell it today you would earn a total of  450.00  from holding Kinea Oportunidades Real or generate 5.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Cshg Atrium Shopping  vs.  Kinea Oportunidades Real

Cshg Atrium Shopping

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cshg Atrium Shopping has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Cshg Atrium is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kinea Oportunidades Real

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kinea Oportunidades Real are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Kinea Oportunidades may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Cshg Atrium and Kinea Oportunidades

The main advantage of trading using opposite Cshg Atrium and Kinea Oportunidades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cshg Atrium position performs unexpectedly, Kinea Oportunidades 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 Kinea Oportunidades will offset losses from the drop in Kinea Oportunidades' long position.

The idea behind Cshg Atrium Shopping and Kinea Oportunidades Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.