Correlation Between BB Renda and SPARTA FIAGRO

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

By analyzing existing cross correlation between BB Renda Corporativa and SPARTA FIAGRO FDO, you can compare the effects of market volatilities on BB Renda and SPARTA FIAGRO 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 BB Renda with a short position of SPARTA FIAGRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of BB Renda and SPARTA FIAGRO.

Diversification Opportunities for BB Renda and SPARTA FIAGRO

-0.51

Correlation Coefficient

BB Renda  SPARTA FIAGRO

Excellent diversification

The 3 months correlation between BBRC11 and SPARTA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding BB Renda Corporativa and SPARTA FIAGRO FDO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPARTA FIAGRO FDO and BB 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 BB Renda Corporativa are associated (or correlated) with SPARTA FIAGRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPARTA FIAGRO FDO has no effect on the direction of BB Renda i.e., BB Renda and SPARTA FIAGRO go up and down completely randomly.

Pair Corralation between BB Renda and SPARTA FIAGRO

Assuming the 90 days trading horizon BB Renda Corporativa is expected to under-perform the SPARTA FIAGRO. In addition to that, BB Renda is 1.83 times more volatile than SPARTA FIAGRO FDO. It trades about -0.06 of its total potential returns per unit of risk. SPARTA FIAGRO FDO is currently generating about 0.22 per unit of volatility. If you would invest  8,861  in SPARTA FIAGRO FDO on April 20, 2025 and sell it today you would earn a total of  690.00  from holding SPARTA FIAGRO FDO or generate 7.79% return on investment over 90 days.

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

BB Renda Corporativa  vs.  SPARTA FIAGRO FDO

BB Renda Corporativa

Risk-Adjusted Performance

Very Weak

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

SPARTA FIAGRO FDO

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SPARTA FIAGRO FDO are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, SPARTA FIAGRO may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with BB Renda and SPARTA FIAGRO

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

The idea behind BB Renda Corporativa and SPARTA FIAGRO FDO 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.