Correlation Between SUPREMO FUNDO and Fator IFIX

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

By analyzing existing cross correlation between SUPREMO FUNDO DE and Fator IFIX Fundo, you can compare the effects of market volatilities on SUPREMO FUNDO and Fator IFIX 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 SUPREMO FUNDO with a short position of Fator IFIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPREMO FUNDO and Fator IFIX.

Diversification Opportunities for SUPREMO FUNDO and Fator IFIX

0.0

Correlation Coefficient

SUPREMO FUNDO  Fator IFIX

Pay attention - limited upside

The 3 months correlation between SUPREMO and Fator is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SUPREMO FUNDO DE and Fator IFIX Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fator IFIX Fundo and SUPREMO 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 SUPREMO FUNDO DE are associated (or correlated) with Fator IFIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fator IFIX Fundo has no effect on the direction of SUPREMO FUNDO i.e., SUPREMO FUNDO and Fator IFIX go up and down completely randomly.

Pair Corralation between SUPREMO FUNDO and Fator IFIX

If you would invest  14,400  in SUPREMO FUNDO DE on October 7, 2024 and sell it today you would earn a total of  0.00  from holding SUPREMO FUNDO DE or generate 0.0% return on investment over 90 days.

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

SUPREMO FUNDO DE  vs.  Fator IFIX Fundo

SUPREMO FUNDO DE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUPREMO FUNDO DE has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong primary indicators, SUPREMO FUNDO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fator IFIX Fundo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fator IFIX Fundo 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.

Pair Trading with SUPREMO FUNDO and Fator IFIX

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

The idea behind SUPREMO FUNDO DE and Fator IFIX 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.