Correlation Between Fundo Invest and ATMA Participaes
Can any of the company-specific risk be diversified away by investing in both Fundo Invest and ATMA Participaes 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 Invest and ATMA Participaes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundo Invest Imobiliario and ATMA Participaes SA, you can compare the effects of market volatilities on Fundo Invest and ATMA Participaes 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 Invest with a short position of ATMA Participaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo Invest and ATMA Participaes.
Diversification Opportunities for Fundo Invest and ATMA Participaes
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fundo and ATMA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fundo Invest Imobiliario and ATMA Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMA Participaes and Fundo Invest 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 Invest Imobiliario are associated (or correlated) with ATMA Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMA Participaes has no effect on the direction of Fundo Invest i.e., Fundo Invest and ATMA Participaes go up and down completely randomly.
Pair Corralation between Fundo Invest and ATMA Participaes
Assuming the 90 days trading horizon Fundo Invest Imobiliario is expected to generate 0.87 times more return on investment than ATMA Participaes. However, Fundo Invest Imobiliario is 1.15 times less risky than ATMA Participaes. It trades about -0.07 of its potential returns per unit of risk. ATMA Participaes SA is currently generating about -0.12 per unit of risk. If you would invest 879.00 in Fundo Invest Imobiliario on September 25, 2024 and sell it today you would lose (240.00) from holding Fundo Invest Imobiliario or give up 27.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Fundo Invest Imobiliario vs. ATMA Participaes SA
Performance |
Timeline |
Fundo Invest Imobiliario |
ATMA Participaes |
Fundo Invest and ATMA Participaes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fundo Invest and ATMA Participaes
The main advantage of trading using opposite Fundo Invest and ATMA Participaes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundo Invest position performs unexpectedly, ATMA Participaes 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 ATMA Participaes will offset losses from the drop in ATMA Participaes' long position.Fundo Invest vs. BTG Pactual Logstica | Fundo Invest vs. Plano Plano Desenvolvimento | Fundo Invest vs. S1YM34 | Fundo Invest vs. Cable One |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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