Correlation Between Kinea Fundo and Procter Gamble

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

By analyzing existing cross correlation between Kinea Fundo Fundos and The Procter Gamble, you can compare the effects of market volatilities on Kinea Fundo and Procter Gamble 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 Kinea Fundo with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Fundo and Procter Gamble.

Diversification Opportunities for Kinea Fundo and Procter Gamble

-0.39

Correlation Coefficient

Kinea Fundo  Procter Gamble

Very good diversification

The 3 months correlation between Kinea and Procter is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Fundo Fundos and The Procter Gamble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble and Kinea Fundo 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 Kinea Fundo Fundos are associated (or correlated) with Procter Gamble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procter Gamble has no effect on the direction of Kinea Fundo i.e., Kinea Fundo and Procter Gamble go up and down completely randomly.

Pair Corralation between Kinea Fundo and Procter Gamble

Assuming the 90 days trading horizon Kinea Fundo Fundos is expected to under-perform the Procter Gamble. But the fund apears to be less risky and, when comparing its historical volatility, Kinea Fundo Fundos is 1.36 times less risky than Procter Gamble. The fund trades about -0.09 of its potential returns per unit of risk. The The Procter Gamble is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  6,903  in The Procter Gamble on October 20, 2024 and sell it today you would earn a total of  35.00  from holding The Procter Gamble or generate 0.51% return on investment over 90 days.

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

Kinea Fundo Fundos  vs.  The Procter Gamble

Kinea Fundo Fundos

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kinea Fundo Fundos has generated negative risk-adjusted returns adding no value to fund investors. Despite latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Procter Gamble

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in The Procter Gamble are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Procter Gamble is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kinea Fundo and Procter Gamble

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

The idea behind Kinea Fundo Fundos and The Procter Gamble 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.