Correlation Between FUNDO DE and Guardian Logistica

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

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

Diversification Opportunities for FUNDO DE and Guardian Logistica

0.0

Correlation Coefficient

FUNDO DE  Guardian Logistica

Pay attention - limited upside

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

Pair Corralation between FUNDO DE and Guardian Logistica

If you would invest  908.00  in Guardian Logistica Fundo on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Guardian Logistica Fundo or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

FUNDO DE INVESTIMENTO  vs.  Guardian Logistica Fundo

FUNDO DE INVESTIMENTO

Risk-Adjusted Performance

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Very Weak

Over the last 90 days FUNDO DE INVESTIMENTO 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.

Guardian Logistica Fundo

Risk-Adjusted Performance

0 of 100

Very Weak

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

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

The idea behind FUNDO DE INVESTIMENTO and Guardian 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.