Correlation Between Jbfo Fof and Plano Plano

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

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

Diversification Opportunities for Jbfo Fof and Plano Plano

-0.63

Correlation Coefficient

Jbfo Fof  Plano Plano

Excellent diversification

The 3 months correlation between Jbfo and Plano is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jbfo Fof Fundo and Plano Plano Desenvolvimento in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plano Plano Desenvol and Jbfo Fof 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 Jbfo Fof Fundo are associated (or correlated) with Plano Plano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plano Plano Desenvol has no effect on the direction of Jbfo Fof i.e., Jbfo Fof and Plano Plano go up and down completely randomly.

Pair Corralation between Jbfo Fof and Plano Plano

Assuming the 90 days trading horizon Jbfo Fof is expected to generate 3.85 times less return on investment than Plano Plano. But when comparing it to its historical volatility, Jbfo Fof Fundo is 2.78 times less risky than Plano Plano. It trades about 0.05 of its potential returns per unit of risk. Plano Plano Desenvolvimento is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  404.00  in Plano Plano Desenvolvimento on October 3, 2024 and sell it today you would earn a total of  513.00  from holding Plano Plano Desenvolvimento or generate 126.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	45.58%
Values	Daily Returns

Jbfo Fof Fundo  vs.  Plano Plano Desenvolvimento

Jbfo Fof Fundo

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jbfo Fof Fundo are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak technical and fundamental indicators, Jbfo Fof sustained solid returns over the last few months and may actually be approaching a breakup point.

Plano Plano Desenvol

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Plano Plano Desenvolvimento has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Jbfo Fof and Plano Plano

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

The idea behind Jbfo Fof Fundo and Plano Plano Desenvolvimento 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.