Correlation Between CF3 FUNDO and Kinea II

Can any of the company-specific risk be diversified away by investing in both CF3 FUNDO and Kinea II 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 CF3 FUNDO and Kinea II into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CF3 FUNDO DE and Kinea II Real, you can compare the effects of market volatilities on CF3 FUNDO and Kinea II 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 CF3 FUNDO with a short position of Kinea II. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF3 FUNDO and Kinea II.

Diversification Opportunities for CF3 FUNDO and Kinea II

0.0

Correlation Coefficient

CF3 FUNDO  Kinea II

Pay attention - limited upside

The 3 months correlation between CF3 and Kinea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CF3 FUNDO DE and Kinea II Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea II Real and CF3 FUNDO 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 CF3 FUNDO DE are associated (or correlated) with Kinea II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea II Real has no effect on the direction of CF3 FUNDO i.e., CF3 FUNDO and Kinea II go up and down completely randomly.

Pair Corralation between CF3 FUNDO and Kinea II

If you would invest  100,000  in CF3 FUNDO DE on September 15, 2024 and sell it today you would earn a total of  0.00  from holding CF3 FUNDO DE or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CF3 FUNDO DE  vs.  Kinea II Real

CF3 FUNDO DE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CF3 FUNDO DE has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong forward indicators, CF3 FUNDO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kinea II Real

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kinea II Real has generated negative risk-adjusted returns adding no value to fund investors. Despite weak performance in the last few months, the Fund's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with CF3 FUNDO and Kinea II

The main advantage of trading using opposite CF3 FUNDO and Kinea II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF3 FUNDO position performs unexpectedly, Kinea II 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 II will offset losses from the drop in Kinea II's long position.

The idea behind CF3 FUNDO DE and Kinea II 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.