Correlation Between EXES FUNDO and Performa Real

Can any of the company-specific risk be diversified away by investing in both EXES FUNDO and Performa Real 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 Performa Real 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 Performa Real Estate, you can compare the effects of market volatilities on EXES FUNDO and Performa Real 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 Performa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXES FUNDO and Performa Real.

Diversification Opportunities for EXES FUNDO and Performa Real

0.33

Correlation Coefficient

EXES FUNDO  Performa Real

Weak diversification

The 3 months correlation between EXES and Performa is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding EXES FUNDO DE and Performa Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performa Real Estate 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 Performa Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performa Real Estate has no effect on the direction of EXES FUNDO i.e., EXES FUNDO and Performa Real go up and down completely randomly.

Pair Corralation between EXES FUNDO and Performa Real

Assuming the 90 days trading horizon EXES FUNDO is expected to generate 2.7 times less return on investment than Performa Real. But when comparing it to its historical volatility, EXES FUNDO DE is 6.95 times less risky than Performa Real. It trades about 0.1 of its potential returns per unit of risk. Performa Real Estate is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,481  in Performa Real Estate on April 23, 2025 and sell it today you would earn a total of  156.00  from holding Performa Real Estate or generate 4.48% return on investment over 90 days.

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

EXES FUNDO DE  vs.  Performa Real Estate

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 7 (%) 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.

Performa Real Estate

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Performa Real Estate are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak primary indicators, Performa Real may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with EXES FUNDO and Performa Real

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

The idea behind EXES FUNDO DE and Performa Real Estate 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 Transaction History module to view history of all your transactions and understand their impact on performance.