Correlation Between Maxi Renda and Aesapar Fundo

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

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

Diversification Opportunities for Maxi Renda and Aesapar Fundo

0.82

Correlation Coefficient

Maxi Renda  Aesapar Fundo

Very poor diversification

The 3 months correlation between Maxi and Aesapar is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Maxi Renda Fundo and Aesapar Fundo de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aesapar Fundo de and Maxi Renda 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 Maxi Renda Fundo are associated (or correlated) with Aesapar Fundo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aesapar Fundo de has no effect on the direction of Maxi Renda i.e., Maxi Renda and Aesapar Fundo go up and down completely randomly.

Pair Corralation between Maxi Renda and Aesapar Fundo

Assuming the 90 days trading horizon Maxi Renda Fundo is expected to generate 0.63 times more return on investment than Aesapar Fundo. However, Maxi Renda Fundo is 1.59 times less risky than Aesapar Fundo. It trades about -0.13 of its potential returns per unit of risk. Aesapar Fundo de is currently generating about -0.22 per unit of risk. If you would invest  980.00  in Maxi Renda Fundo on September 20, 2024 and sell it today you would lose (90.00) from holding Maxi Renda Fundo or give up 9.18% of portfolio value over 90 days.

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

Maxi Renda Fundo  vs.  Aesapar Fundo de

Maxi Renda Fundo

Risk-Adjusted Performance

0 of 100

Very Weak

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

Aesapar Fundo de

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aesapar Fundo de has generated negative risk-adjusted returns adding no value to fund investors. Despite weak performance in the last few months, the Fund's technical and fundamental 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.

Pair Trading with Maxi Renda and Aesapar Fundo

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

The idea behind Maxi Renda Fundo and Aesapar Fundo de 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.