Correlation Between Xp Properties and Panorama Properties

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

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

Diversification Opportunities for Xp Properties and Panorama Properties

-0.51

Correlation Coefficient

Xp Properties  Panorama Properties

Excellent diversification

The 3 months correlation between XPPR11 and Panorama is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Xp Properties Fundo and Panorama Properties Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panorama Properties Fundo and Xp Properties 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 Xp Properties Fundo are associated (or correlated) with Panorama Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panorama Properties Fundo has no effect on the direction of Xp Properties i.e., Xp Properties and Panorama Properties go up and down completely randomly.

Pair Corralation between Xp Properties and Panorama Properties

Assuming the 90 days trading horizon Xp Properties Fundo is expected to under-perform the Panorama Properties. But the fund apears to be less risky and, when comparing its historical volatility, Xp Properties Fundo is 3.94 times less risky than Panorama Properties. The fund trades about -0.31 of its potential returns per unit of risk. The Panorama Properties Fundo is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  5,645  in Panorama Properties Fundo on September 15, 2024 and sell it today you would earn a total of  1,905  from holding Panorama Properties Fundo or generate 33.75% return on investment over 90 days.

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

Xp Properties Fundo  vs.  Panorama Properties Fundo

Xp Properties Fundo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xp Properties Fundo 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 January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Panorama Properties Fundo

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Panorama Properties Fundo are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Panorama Properties sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xp Properties and Panorama Properties

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

The idea behind Xp Properties Fundo and Panorama Properties 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.