Correlation Between Guardian Logistica and Kinea Fundo

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

By analyzing existing cross correlation between Guardian Logistica Fundo and Kinea Fundo Fundos, you can compare the effects of market volatilities on Guardian Logistica and Kinea Fundo 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 Guardian Logistica with a short position of Kinea Fundo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Logistica and Kinea Fundo.

Diversification Opportunities for Guardian Logistica and Kinea Fundo

0.0

Correlation Coefficient

Guardian Logistica  Kinea Fundo

Pay attention - limited upside

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

Pair Corralation between Guardian Logistica and Kinea Fundo

If you would invest  908.00  in Guardian Logistica Fundo on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Guardian Logistica Fundo 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

Guardian Logistica Fundo  vs.  Kinea Fundo Fundos

Guardian Logistica Fundo

Risk-Adjusted Performance

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Very Weak

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

Kinea Fundo Fundos

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kinea Fundo Fundos 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 Guardian Logistica and Kinea Fundo

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

The idea behind Guardian Logistica Fundo and Kinea Fundo Fundos 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.