Correlation Between EXES FUNDO and Vinci Corporate

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

Diversification Opportunities for EXES FUNDO and Vinci Corporate

0.35

Correlation Coefficient

EXES FUNDO  Vinci Corporate

Weak diversification

The 3 months correlation between EXES and Vinci is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding EXES FUNDO DE and Vinci Corporate Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci Corporate 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 Vinci Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci Corporate Fundo has no effect on the direction of EXES FUNDO i.e., EXES FUNDO and Vinci Corporate go up and down completely randomly.

Pair Corralation between EXES FUNDO and Vinci Corporate

Assuming the 90 days trading horizon EXES FUNDO DE is expected to generate 0.55 times more return on investment than Vinci Corporate. However, EXES FUNDO DE is 1.82 times less risky than Vinci Corporate. It trades about 0.1 of its potential returns per unit of risk. Vinci Corporate Fundo is currently generating about 0.03 per unit of risk. If you would invest  898.00  in EXES FUNDO DE on April 23, 2025 and sell it today you would earn a total of  31.00  from holding EXES FUNDO DE or generate 3.45% 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.  Vinci Corporate 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 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.

Vinci Corporate Fundo

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vinci Corporate Fundo are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Vinci Corporate 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 Vinci Corporate

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

The idea behind EXES FUNDO DE and Vinci Corporate 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 CEOs Directory module to screen CEOs from public companies around the world.