Correlation Between CSHG Real and SUPREMO FUNDO

Can any of the company-specific risk be diversified away by investing in both CSHG Real and SUPREMO 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 CSHG Real and SUPREMO FUNDO into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CSHG Real Estate and SUPREMO FUNDO DE, you can compare the effects of market volatilities on CSHG Real and SUPREMO 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 CSHG Real with a short position of SUPREMO FUNDO. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSHG Real and SUPREMO FUNDO.

Diversification Opportunities for CSHG Real and SUPREMO FUNDO

0.0

Correlation Coefficient

CSHG Real  SUPREMO FUNDO

Pay attention - limited upside

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

Pair Corralation between CSHG Real and SUPREMO FUNDO

Assuming the 90 days trading horizon CSHG Real is expected to generate 2.2 times less return on investment than SUPREMO FUNDO. In addition to that, CSHG Real is 2.0 times more volatile than SUPREMO FUNDO DE. It trades about 0.01 of its total potential returns per unit of risk. SUPREMO FUNDO DE is currently generating about 0.06 per unit of volatility. If you would invest  11,990  in SUPREMO FUNDO DE on October 9, 2024 and sell it today you would earn a total of  2,410  from holding SUPREMO FUNDO DE or generate 20.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	66.4%
Values	Daily Returns

CSHG Real Estate  vs.  SUPREMO FUNDO DE

CSHG Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

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

SUPREMO FUNDO DE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUPREMO FUNDO DE has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong primary indicators, SUPREMO FUNDO 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 Real and SUPREMO FUNDO

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

The idea behind CSHG Real Estate and SUPREMO FUNDO DE 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.