Correlation Between Kinea Oportunidades and Cshg Logistica

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

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

Diversification Opportunities for Kinea Oportunidades and Cshg Logistica

0.67

Correlation Coefficient

Kinea Oportunidades  Cshg Logistica

Poor diversification

The 3 months correlation between Kinea and Cshg is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Oportunidades Real and Cshg Logistica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cshg Logistica and Kinea Oportunidades 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 Oportunidades Real are associated (or correlated) with Cshg Logistica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cshg Logistica has no effect on the direction of Kinea Oportunidades i.e., Kinea Oportunidades and Cshg Logistica go up and down completely randomly.

Pair Corralation between Kinea Oportunidades and Cshg Logistica

Assuming the 90 days trading horizon Kinea Oportunidades Real is expected to generate 2.12 times more return on investment than Cshg Logistica. However, Kinea Oportunidades is 2.12 times more volatile than Cshg Logistica . It trades about 0.07 of its potential returns per unit of risk. Cshg Logistica is currently generating about -0.03 per unit of risk. If you would invest  7,950  in Kinea Oportunidades Real on December 28, 2024 and sell it today you would earn a total of  450.00  from holding Kinea Oportunidades Real or generate 5.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Kinea Oportunidades Real  vs.  Cshg Logistica

Kinea Oportunidades Real

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kinea Oportunidades Real are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Kinea Oportunidades may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cshg Logistica

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cshg Logistica has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong essential indicators, Cshg Logistica 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 Oportunidades and Cshg Logistica

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

The idea behind Kinea Oportunidades Real and Cshg Logistica 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.