Correlation Between EXES FUNDO and Imob IV

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

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

Diversification Opportunities for EXES FUNDO and Imob IV

0.84

Correlation Coefficient

EXES FUNDO  Imob IV

Very poor diversification

The 3 months correlation between EXES and Imob is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding EXES FUNDO DE and Imob IV Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imob IV Fundo and EXES FUNDO 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 EXES FUNDO DE are associated (or correlated) with Imob IV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imob IV Fundo has no effect on the direction of EXES FUNDO i.e., EXES FUNDO and Imob IV go up and down completely randomly.

Pair Corralation between EXES FUNDO and Imob IV

Assuming the 90 days trading horizon EXES FUNDO DE is expected to generate 5.04 times more return on investment than Imob IV. However, EXES FUNDO is 5.04 times more volatile than Imob IV Fundo. It trades about 0.13 of its potential returns per unit of risk. Imob IV Fundo is currently generating about 0.22 per unit of risk. If you would invest  877.00  in EXES FUNDO DE on April 22, 2025 and sell it today you would earn a total of  48.00  from holding EXES FUNDO DE or generate 5.47% return on investment over 90 days.

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

EXES FUNDO DE  vs.  Imob IV Fundo

EXES FUNDO DE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EXES FUNDO DE are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong technical and fundamental indicators, EXES FUNDO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with EXES FUNDO and Imob IV

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

The idea behind EXES FUNDO DE and Imob IV 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.