Correlation Between FUNDO DE and Hsi Logistica

Can any of the company-specific risk be diversified away by investing in both FUNDO DE 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 FUNDO DE and Hsi 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 Hsi Logistica Fundo, you can compare the effects of market volatilities on FUNDO DE 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 FUNDO DE with a short position of Hsi Logistica. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUNDO DE and Hsi Logistica.

Diversification Opportunities for FUNDO DE and Hsi Logistica

0.77

Correlation Coefficient

FUNDO DE  Hsi Logistica

Poor diversification

The 3 months correlation between FUNDO and Hsi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding FUNDO DE INVESTIMENTO 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 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 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 FUNDO DE i.e., FUNDO DE and Hsi Logistica go up and down completely randomly.

Pair Corralation between FUNDO DE and Hsi Logistica

Assuming the 90 days trading horizon FUNDO DE INVESTIMENTO is expected to under-perform the Hsi Logistica. In addition to that, FUNDO DE is 1.41 times more volatile than Hsi Logistica Fundo. It trades about -0.1 of its total potential returns per unit of risk. Hsi Logistica Fundo is currently generating about -0.08 per unit of volatility. If you would invest  7,879  in Hsi Logistica Fundo on October 25, 2024 and sell it today you would lose (626.00) from holding Hsi Logistica Fundo or give up 7.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.31%
Values	Daily Returns

FUNDO DE INVESTIMENTO  vs.  Hsi Logistica Fundo

FUNDO DE INVESTIMENTO

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with FUNDO DE and Hsi Logistica

The main advantage of trading using opposite FUNDO DE and Hsi Logistica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUNDO DE 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 FUNDO DE INVESTIMENTO 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.