Correlation Between Imob IV and Jivemaua Bossanova

Can any of the company-specific risk be diversified away by investing in both Imob IV and Jivemaua Bossanova 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 Jivemaua Bossanova 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 Jivemaua Bossanova Fundo, you can compare the effects of market volatilities on Imob IV and Jivemaua Bossanova 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 Jivemaua Bossanova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imob IV and Jivemaua Bossanova.

Diversification Opportunities for Imob IV and Jivemaua Bossanova

0.66

Correlation Coefficient

Imob IV  Jivemaua Bossanova

Poor diversification

The 3 months correlation between Imob and Jivemaua is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Imob IV Fundo and Jivemaua Bossanova Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jivemaua Bossanova 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 Jivemaua Bossanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jivemaua Bossanova Fundo has no effect on the direction of Imob IV i.e., Imob IV and Jivemaua Bossanova go up and down completely randomly.

Pair Corralation between Imob IV and Jivemaua Bossanova

Assuming the 90 days trading horizon Imob IV is expected to generate 2.16 times less return on investment than Jivemaua Bossanova. But when comparing it to its historical volatility, Imob IV Fundo is 9.97 times less risky than Jivemaua Bossanova. It trades about 0.22 of its potential returns per unit of risk. Jivemaua Bossanova Fundo is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  8,347  in Jivemaua Bossanova Fundo on April 24, 2025 and sell it today you would earn a total of  290.00  from holding Jivemaua Bossanova Fundo or generate 3.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Imob IV Fundo  vs.  Jivemaua Bossanova 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.

Jivemaua Bossanova Fundo

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jivemaua Bossanova Fundo are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong fundamental drivers, Jivemaua Bossanova 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 Jivemaua Bossanova

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

The idea behind Imob IV Fundo and Jivemaua Bossanova 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.