Correlation Between Fundo De and Adobe

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

By analyzing existing cross correlation between Fundo de Investimento and Adobe Inc, you can compare the effects of market volatilities on Fundo De and Adobe 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 Fundo De with a short position of Adobe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo De and Adobe.

Diversification Opportunities for Fundo De and Adobe

-0.47

Correlation Coefficient

Fundo De  Adobe

Very good diversification

The 3 months correlation between Fundo and Adobe is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fundo de Investimento and Adobe Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adobe Inc and Fundo De 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 Fundo de Investimento are associated (or correlated) with Adobe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adobe Inc has no effect on the direction of Fundo De i.e., Fundo De and Adobe go up and down completely randomly.

Pair Corralation between Fundo De and Adobe

Assuming the 90 days trading horizon Fundo de Investimento is expected to generate 0.35 times more return on investment than Adobe. However, Fundo de Investimento is 2.89 times less risky than Adobe. It trades about 0.18 of its potential returns per unit of risk. Adobe Inc is currently generating about 0.02 per unit of risk. If you would invest  4,394  in Fundo de Investimento on April 24, 2025 and sell it today you would earn a total of  392.00  from holding Fundo de Investimento or generate 8.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Fundo de Investimento  vs.  Adobe Inc

Fundo de Investimento

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fundo de Investimento are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak technical and fundamental indicators, Fundo De may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Adobe Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Adobe Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Adobe is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fundo De and Adobe

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

The idea behind Fundo de Investimento and Adobe Inc 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.