Correlation Between Cshg Logistica and Kinea Oportunidades

Can any of the company-specific risk be diversified away by investing in both Cshg Logistica 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 Logistica 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 Logistica and Kinea Oportunidades Real, you can compare the effects of market volatilities on Cshg Logistica 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 Logistica with a short position of Kinea Oportunidades. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Logistica and Kinea Oportunidades.

Diversification Opportunities for Cshg Logistica and Kinea Oportunidades

0.8

Correlation Coefficient

Cshg Logistica  Kinea Oportunidades

Very poor diversification

The 3 months correlation between Cshg and Kinea is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Logistica 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 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 Cshg Logistica 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 Logistica i.e., Cshg Logistica and Kinea Oportunidades go up and down completely randomly.

Pair Corralation between Cshg Logistica and Kinea Oportunidades

Assuming the 90 days trading horizon Cshg Logistica is expected to generate 0.54 times more return on investment than Kinea Oportunidades. However, Cshg Logistica is 1.85 times less risky than Kinea Oportunidades. It trades about -0.08 of its potential returns per unit of risk. Kinea Oportunidades Real is currently generating about -0.25 per unit of risk. If you would invest  15,663  in Cshg Logistica on September 12, 2024 and sell it today you would lose (763.00) from holding Cshg Logistica or give up 4.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Cshg Logistica   vs.  Kinea Oportunidades Real

Cshg Logistica

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cshg Logistica has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong essential indicators, Cshg Logistica 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

0 of 100

Very Weak

Over the last 90 days Kinea Oportunidades 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 Cshg Logistica and Kinea Oportunidades

The main advantage of trading using opposite Cshg Logistica and Kinea Oportunidades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cshg Logistica 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 Logistica 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.

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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.