Correlation Between Cshg Jhsf and Hsi Ativos

Can any of the company-specific risk be diversified away by investing in both Cshg Jhsf and Hsi Ativos 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 Jhsf and Hsi Ativos into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cshg Jhsf Prime and Hsi Ativos Financeiros, you can compare the effects of market volatilities on Cshg Jhsf and Hsi Ativos 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 Jhsf with a short position of Hsi Ativos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Jhsf and Hsi Ativos.

Diversification Opportunities for Cshg Jhsf and Hsi Ativos

0.23

Correlation Coefficient

Cshg Jhsf  Hsi Ativos

Modest diversification

The 3 months correlation between Cshg and Hsi is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Jhsf Prime and Hsi Ativos Financeiros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsi Ativos Financeiros and Cshg Jhsf 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 Jhsf Prime are associated (or correlated) with Hsi Ativos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsi Ativos Financeiros has no effect on the direction of Cshg Jhsf i.e., Cshg Jhsf and Hsi Ativos go up and down completely randomly.

Pair Corralation between Cshg Jhsf and Hsi Ativos

Assuming the 90 days trading horizon Cshg Jhsf Prime is expected to under-perform the Hsi Ativos. But the fund apears to be less risky and, when comparing its historical volatility, Cshg Jhsf Prime is 1.57 times less risky than Hsi Ativos. The fund trades about -0.13 of its potential returns per unit of risk. The Hsi Ativos Financeiros is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest  6,633  in Hsi Ativos Financeiros on October 27, 2024 and sell it today you would earn a total of  957.00  from holding Hsi Ativos Financeiros or generate 14.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Cshg Jhsf Prime  vs.  Hsi Ativos Financeiros

Cshg Jhsf Prime

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cshg Jhsf Prime 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 February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Hsi Ativos Financeiros

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hsi Ativos Financeiros are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Hsi Ativos is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cshg Jhsf and Hsi Ativos

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

The idea behind Cshg Jhsf Prime and Hsi Ativos Financeiros 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.