Correlation Between Hsi Ativos and Hsi Logistica

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

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

Diversification Opportunities for Hsi Ativos and Hsi Logistica

0.42

Correlation Coefficient

Hsi Ativos  Hsi Logistica

Very weak diversification

The 3 months correlation between Hsi and Hsi is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hsi Ativos Financeiros and Hsi Logistica Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsi Logistica Fundo and Hsi Ativos 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 Hsi Ativos Financeiros are associated (or correlated) with Hsi Logistica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsi Logistica Fundo has no effect on the direction of Hsi Ativos i.e., Hsi Ativos and Hsi Logistica go up and down completely randomly.

Pair Corralation between Hsi Ativos and Hsi Logistica

Assuming the 90 days trading horizon Hsi Ativos Financeiros is expected to generate 1.6 times more return on investment than Hsi Logistica. However, Hsi Ativos is 1.6 times more volatile than Hsi Logistica Fundo. It trades about 0.21 of its potential returns per unit of risk. Hsi Logistica Fundo is currently generating about 0.11 per unit of risk. If you would invest  6,342  in Hsi Ativos Financeiros on December 22, 2024 and sell it today you would earn a total of  1,596  from holding Hsi Ativos Financeiros or generate 25.17% return on investment over 90 days.

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

Hsi Ativos Financeiros  vs.  Hsi Logistica Fundo

Hsi Ativos Financeiros

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hsi Ativos Financeiros are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Hsi Ativos sustained solid returns over the last few months and may actually be approaching a breakup point.

Hsi Logistica Fundo

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hsi Logistica Fundo are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak essential indicators, Hsi Logistica may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Hsi Ativos and Hsi Logistica

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

The idea behind Hsi Ativos Financeiros and Hsi Logistica Fundo 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.

Check out your portfolio center.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.