Correlation Between FUNDO DE and Jbfo Fof

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

Diversification Opportunities for FUNDO DE and Jbfo Fof

-0.2

Correlation Coefficient

FUNDO DE  Jbfo Fof

Good diversification

The 3 months correlation between FUNDO and Jbfo is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding FUNDO DE INVESTIMENTO and Jbfo Fof Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jbfo Fof 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 Jbfo Fof. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jbfo Fof Fundo has no effect on the direction of FUNDO DE i.e., FUNDO DE and Jbfo Fof go up and down completely randomly.

Pair Corralation between FUNDO DE and Jbfo Fof

Assuming the 90 days trading horizon FUNDO DE INVESTIMENTO is expected to generate 244.75 times more return on investment than Jbfo Fof. However, FUNDO DE is 244.75 times more volatile than Jbfo Fof Fundo. It trades about 0.07 of its potential returns per unit of risk. Jbfo Fof Fundo is currently generating about 0.13 per unit of risk. If you would invest  796.00  in FUNDO DE INVESTIMENTO on December 24, 2024 and sell it today you would earn a total of  49.00  from holding FUNDO DE INVESTIMENTO or generate 6.16% return on investment over 90 days.

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

FUNDO DE INVESTIMENTO  vs.  Jbfo Fof Fundo

FUNDO DE INVESTIMENTO

Risk-Adjusted Performance

OK

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

Jbfo Fof Fundo

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jbfo Fof Fundo are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong technical and fundamental indicators, Jbfo Fof 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 Jbfo Fof

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

The idea behind FUNDO DE INVESTIMENTO and Jbfo Fof 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.