Correlation Between Jivemaua Bossanova and EXES FUNDO

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

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

Diversification Opportunities for Jivemaua Bossanova and EXES FUNDO

0.6

Correlation Coefficient

Jivemaua Bossanova  EXES FUNDO

Poor diversification

The 3 months correlation between Jivemaua and EXES is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jivemaua Bossanova Fundo and EXES FUNDO DE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXES FUNDO DE and Jivemaua Bossanova 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 Jivemaua Bossanova Fundo are associated (or correlated) with EXES FUNDO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXES FUNDO DE has no effect on the direction of Jivemaua Bossanova i.e., Jivemaua Bossanova and EXES FUNDO go up and down completely randomly.

Pair Corralation between Jivemaua Bossanova and EXES FUNDO

Assuming the 90 days trading horizon Jivemaua Bossanova Fundo is expected to generate 2.51 times more return on investment than EXES FUNDO. However, Jivemaua Bossanova is 2.51 times more volatile than EXES FUNDO DE. It trades about 0.05 of its potential returns per unit of risk. EXES FUNDO DE is currently generating about 0.11 per unit of risk. If you would invest  8,347  in Jivemaua Bossanova Fundo on April 24, 2025 and sell it today you would earn a total of  290.00  from holding Jivemaua Bossanova Fundo or generate 3.47% return on investment over 90 days.

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

Jivemaua Bossanova Fundo  vs.  EXES FUNDO DE

Jivemaua Bossanova Fundo

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jivemaua Bossanova Fundo are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong fundamental drivers, Jivemaua Bossanova is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 8 (%) 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.

Pair Trading with Jivemaua Bossanova and EXES FUNDO

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

The idea behind Jivemaua Bossanova Fundo and EXES FUNDO DE 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.