Correlation Between Aesapar Fundo and Hsi Logistica

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

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

Diversification Opportunities for Aesapar Fundo and Hsi Logistica

0.76

Correlation Coefficient

Aesapar Fundo  Hsi Logistica

Poor diversification

The 3 months correlation between Aesapar and Hsi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aesapar Fundo de 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 Aesapar 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 Aesapar Fundo de 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 Aesapar Fundo i.e., Aesapar Fundo and Hsi Logistica go up and down completely randomly.

Pair Corralation between Aesapar Fundo and Hsi Logistica

Assuming the 90 days trading horizon Aesapar Fundo de is expected to generate 0.8 times more return on investment than Hsi Logistica. However, Aesapar Fundo de is 1.25 times less risky than Hsi Logistica. It trades about 0.18 of its potential returns per unit of risk. Hsi Logistica Fundo is currently generating about 0.04 per unit of risk. If you would invest  9,602  in Aesapar Fundo de on October 10, 2024 and sell it today you would earn a total of  513.00  from holding Aesapar Fundo de or generate 5.34% return on investment over 90 days.

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

Aesapar Fundo de  vs.  Hsi Logistica Fundo

Aesapar Fundo de

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aesapar Fundo de has generated negative risk-adjusted returns adding no value to fund investors. Despite weak performance in the last few months, the Fund's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Hsi Logistica Fundo

Risk-Adjusted Performance

0 of 100

Very Weak

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

The main advantage of trading using opposite Aesapar Fundo and Hsi Logistica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesapar Fundo 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 Aesapar Fundo de 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.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .