Correlation Between FDO INV and Guardian Logistica

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

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

Diversification Opportunities for FDO INV and Guardian Logistica

0.0

Correlation Coefficient

FDO INV  Guardian Logistica

Pay attention - limited upside

The 3 months correlation between FDO and Guardian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDO INV IMOB 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 FDO INV 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 FDO INV IMOB 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 FDO INV i.e., FDO INV and Guardian Logistica go up and down completely randomly.

Pair Corralation between FDO INV and Guardian Logistica

Assuming the 90 days trading horizon FDO INV IMOB is expected to generate 130.05 times more return on investment than Guardian Logistica. However, FDO INV is 130.05 times more volatile than Guardian Logistica Fundo. It trades about 0.07 of its potential returns per unit of risk. Guardian Logistica Fundo is currently generating about 0.02 per unit of risk. If you would invest  19.00  in FDO INV IMOB on September 20, 2024 and sell it today you would earn a total of  144,231  from holding FDO INV IMOB or generate 759110.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	49.6%
Values	Daily Returns

FDO INV IMOB  vs.  Guardian Logistica Fundo

FDO INV IMOB

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FDO INV IMOB are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, FDO INV may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 FDO INV and Guardian Logistica

The main advantage of trading using opposite FDO INV and Guardian Logistica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDO INV 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 FDO INV IMOB 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.