Correlation Between EXES FUNDO and SPARTA FIAGRO

Can any of the company-specific risk be diversified away by investing in both EXES FUNDO 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 EXES FUNDO and SPARTA FIAGRO 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 SPARTA FIAGRO FDO, you can compare the effects of market volatilities on EXES FUNDO 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 EXES FUNDO with a short position of SPARTA FIAGRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXES FUNDO and SPARTA FIAGRO.

Diversification Opportunities for EXES FUNDO and SPARTA FIAGRO

0.87

Correlation Coefficient

EXES FUNDO  SPARTA FIAGRO

Very poor diversification

The 3 months correlation between EXES and SPARTA is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding EXES FUNDO DE 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 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 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 EXES FUNDO i.e., EXES FUNDO and SPARTA FIAGRO go up and down completely randomly.

Pair Corralation between EXES FUNDO and SPARTA FIAGRO

Assuming the 90 days trading horizon EXES FUNDO is expected to generate 1.25 times less return on investment than SPARTA FIAGRO. In addition to that, EXES FUNDO is 1.15 times more volatile than SPARTA FIAGRO FDO. It trades about 0.14 of its total potential returns per unit of risk. SPARTA FIAGRO FDO is currently generating about 0.21 per unit of volatility. If you would invest  8,861  in SPARTA FIAGRO FDO on April 22, 2025 and sell it today you would earn a total of  669.00  from holding SPARTA FIAGRO FDO or generate 7.55% 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.  SPARTA FIAGRO FDO

EXES FUNDO DE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in EXES FUNDO DE are ranked lower than 11 (%) 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.

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 EXES FUNDO and SPARTA FIAGRO

The main advantage of trading using opposite EXES FUNDO and SPARTA FIAGRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXES FUNDO 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 EXES FUNDO DE 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.

Check out your portfolio center.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.