Correlation Between Fator IFIX and Lupatech

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Can any of the company-specific risk be diversified away by investing in both Fator IFIX and Lupatech 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 Fator IFIX and Lupatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fator IFIX Fundo and Lupatech SA, you can compare the effects of market volatilities on Fator IFIX and Lupatech 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 Fator IFIX with a short position of Lupatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fator IFIX and Lupatech.

Diversification Opportunities for Fator IFIX and Lupatech

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Fator IFIX and Lupatech

If you would invest  8,578  in Fator IFIX Fundo on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Fator IFIX Fundo or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Fator IFIX Fundo  vs.  Lupatech SA

 Performance 
       Timeline  
Fator IFIX Fundo 

Risk-Adjusted Performance

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Over the last 90 days Fator IFIX Fundo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Fator IFIX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Lupatech SA 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Lupatech SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Fator IFIX and Lupatech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fator IFIX and Lupatech

The main advantage of trading using opposite Fator IFIX and Lupatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fator IFIX position performs unexpectedly, Lupatech 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 Lupatech will offset losses from the drop in Lupatech's long position.
The idea behind Fator IFIX Fundo and Lupatech SA 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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