Correlation Between Fator IFIX and OSX Brasil

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

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

Diversification Opportunities for Fator IFIX and OSX Brasil

0.0

Correlation Coefficient

Fator IFIX  OSX Brasil

Pay attention - limited upside

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

Pair Corralation between Fator IFIX and OSX Brasil

If you would invest  380.00  in OSX Brasil SA on September 3, 2024 and sell it today you would earn a total of  0.00  from holding OSX Brasil SA or generate 0.0% return on investment over 90 days.

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

Fator IFIX Fundo  vs.  OSX Brasil SA

Fator IFIX Fundo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fator IFIX Fundo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Fator IFIX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

OSX Brasil SA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OSX Brasil SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, OSX Brasil is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Fator IFIX and OSX Brasil

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

The idea behind Fator IFIX Fundo and OSX Brasil SA 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.

Check out your portfolio center.

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.