Correlation Between Imob IV and Jbfo Fof

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

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

Diversification Opportunities for Imob IV and Jbfo Fof

0.92

Correlation Coefficient

Imob IV  Jbfo Fof

Almost no diversification

The 3 months correlation between Imob and Jbfo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Imob IV Fundo and Jbfo Fof Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jbfo Fof Fundo and Imob IV 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 Imob IV Fundo are associated (or correlated) with Jbfo Fof. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jbfo Fof Fundo has no effect on the direction of Imob IV i.e., Imob IV and Jbfo Fof go up and down completely randomly.

Pair Corralation between Imob IV and Jbfo Fof

Assuming the 90 days trading horizon Imob IV Fundo is expected to generate 14.93 times more return on investment than Jbfo Fof. However, Imob IV is 14.93 times more volatile than Jbfo Fof Fundo. It trades about 0.22 of its potential returns per unit of risk. Jbfo Fof Fundo is currently generating about 0.18 per unit of risk. If you would invest  15,622  in Imob IV Fundo on April 24, 2025 and sell it today you would earn a total of  283.00  from holding Imob IV Fundo or generate 1.81% return on investment over 90 days.

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

Imob IV Fundo  vs.  Jbfo Fof Fundo

Imob IV Fundo

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Imob IV Fundo are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Imob IV is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jbfo Fof Fundo

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jbfo Fof Fundo are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong technical and fundamental indicators, Jbfo Fof is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Imob IV and Jbfo Fof

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

The idea behind Imob IV Fundo and Jbfo Fof 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.